133
PROCEDURE OF STARTING BRASS HARDWARE AND ARTWARE EXPORT BUSINESS -A STUDY WITH SPECIFIC REFERENCE TO ALIGARH AND MORADABAD SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF IN MARKETING MANAGEMENT BY ANIS AHMAD Under the supervision of MR. MOHD. AAMIR KHAN DEPARTMENT OF BUSINESS ADMINISTRATION ALIGARH MUSLIM UNIVERSITY ALIGARH (INDIA) 1995

PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

  • Upload
    others

  • View
    2

  • Download
    0

Embed Size (px)

Citation preview

Page 1: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

PROCEDURE OF STARTING BRASS HARDWARE AND ARTWARE EXPORT BUSINESS -A STUDY WITH SPECIFIC REFERENCE TO

ALIGARH AND MORADABAD

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF

IN

MARKETING MANAGEMENT

BY

ANIS AHMAD

Under the supervision of

MR. MOHD. AAMIR KHAN

DEPARTMENT OF BUSINESS ADMINISTRATION ALIGARH MUSLIM UNIVERSITY

ALIGARH (INDIA)

1995

Page 2: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

^.««!*-,,7;

" " "'^<?C.^. '

C;HECrXD'200a

? 3 FFR log

fed in ^ • DiKai

X

Page 3: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

MOHD. AAMIR KHAN LECTURER

Phones Chairman's Chamber 259 Offico 270

DEPARTWIENT OF BUSIWESS AD Ml SMI STRATI ON

ALIGARH MUSLIM UNIVERSITY ALIGARH 202 002 (India)

D a t e :03- tZ5 i -1994

Certificate

Certified that Mr. Anis Ahmad of Post-Graduate

DiplDina-ir;- Har''etzng flanag&ment has completsti rus

dissBrtation entitled "Procedure of starting Brass

hardware and artware export business - A study with

specific reference to Aligarh and Moradabad" in

partial fulfilrient of P.G, Diploma-in-Mar^-eting

Manaceffient under my guidance and sapervisicn.

To the best of re/ knowledge and belief the work is

based on the iPv^eBtigations msde, data collected

and analysed b> him and it has not been submitted

m other Universit/ or Institution for any diploma

and degree.

I wish him success m all walks of his life.

(MOHD.AAHIR KHAN) Supervisor

Page 4: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

DEDICATED TO MY PARENTS

"who always teach me to love, respect and to serve humanity"

Page 5: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

(1)

ACKNOWLEDGEMENT

It 15 proud privilege of me to express iriy deep sense of

gratidute, heartful regards, appreciation and

indebtedness to the chaxr/nan, teachers and my

Eupervisor, Mr. Mohd. Aamir Khan, Department of Business

Administration, A,M.U- for their invaluable guidance,

deeprocted interest, inspiration and continuous

encouragement throughout the work without which it would

not have been possible to complete my dissertation.

I am also thankful to Mr. Sikroria and Mr. Mushtaque,

officerH at T.D.A., Mr. S.W.H. Rizvi, Assistant

Librarian I.I.F.T., Mr. H.N. Jha and Mr. Asad, officers

at E.E.P.C.H. and PHDCCI respectively, for providing me

With the requisite data for this research work.

Thanks arB also to Mr. Sanjay Agarwal, Director Sanlika

CorpDration fPtd.) Ltd., Aligarh for his guidance and

valuable suggestions made while conducting the personal

interviews of various exporters in Aligarh and

Moradabad.

My thanks also go to my colleagues Mr. Tahseen Iqbal and

Mr. Anwar Ahmad whose continuous encouragements and

suggestions throughout this work could not be ignored on

my part.

Last but not least 1 am thankful to all my friends

especially Dr. Abid All Ansari, Mr. Shakil Ahmad, Mr.

Shoeb Ahmad, Mr. Arshad Jamal, Mr. Md. Jamshed, Mr.

Shamshad Ahmad, Mr. Mubassir Hasan, Mr. Mohd. Imran and

Page 6: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

(ii)

Mr. Afsar Imam, who have always been a source of

inspiration throughout this diBsertation work.

M/ special thanks go to Mr. Neyazul Islam (IffTEGRATED

COMPUTERS) who typed ?< computerised my dissertation

with great sincerity and responsibility.

Date : Z'^^ January, 1994

ALIGARH i <ANIS AHMAD)

Page 7: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

(lii)

PREFACE

In the continuing process of liberalisation and

globalisation of Indian econom/ initiated in February,

1994, lot of changes are being made in the policy,

procedure and their implementation of Brass Builder's

hardware and atrware e>;port business. This work attempts

to bring together all the latest changes, whereby the

e-porters will find it rrtost informative and updated

version for starting, e.ipanding and diversifying their

D/erseas trading activities.

5i!-jce this ^i^rV also deals in detail ail the policy and

procedural lEsues, all other functionaries as also the

st-'dents of international marketing will equally benefit

-frosTi its contents. It is a guidlme on e,spDrt procedure

arid documents of practical utility, which deals all

aspects of theoretical and practical knowledge.

The present v.'orl" gives a profile of all the new schemes m

sz far as thev relste directi> or indirectly to e-iports.

It highlights a comprehensive picture of not only the new

and liberalised Five Year E^IM Policy, 1992-97 but also

the LER!iS(Liberli5Bd E>:change Rate Management Scheme)

'Tiekmg foreign e,-;change freely available for export

prcsnotion, industrial/foreign investment policy, shippment

terms, quality control, incentives, labelling procedures

and other documentation tec.

An important addition is the ENport Licensing Procedure

besides carrying out a change in almost every aspect.

The present work of various aspects is dealt with in seven

Chapters. The first chapter deals with the introductory

Page 8: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

(iv)

part li 'e historical background, international situation,

structure of industry and status of Brass Builder's

hardwaare and artvtare. The second chapter deals with the

various steps to how to begin this export business. The

third chapter deals with e,;port procurement, shipment and

packing of these products. The fourth chapter deals with

the marketing channels whereas fifth chapter highlights

its financing procedures.

The siKth chapter deals with the export assistance and

facilities. The seventh chapter covers the proble/ns faced

by Indian Brass Builder's hardware and artware e;;pDrter5.

Finally I have highlighted the cunclusiDns and

HLiggestions drawn from this study.

This work is totally unique m the sense as this type of

study has not been investigated before. Notwithstanding

the help and guidance received from various sources, I am

alone responsible for the matters given herein.

Page 9: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

CONTENTS

Page No.

ACKNOWLEDGEHENT A .". •}^.

PREFACE '^V. .-. .^. 1 - 9

CHAPTER-1: INTRODUCTION s

U ) HISTORICAL BACKGROUND

ixx) INTERNATIONAL SITUATION OF BRASS

BUILDER'S HARDWARE AND ARTWARE

(iii)STRUCTURE OF INDUSTRY IN INDIA

iiv) PRODUCT RAh4GE

(v) EXPORTS OF BRASS BUILDER'S

HARDWARE AND ARTWARE

(vi) STATUS OF BFAS3 BUILDER'S

HARDWARE AND ART WARE IN U.P.

CHAPTER-2: HOW TO BEGIN A BRASS HARDWARE AND ARTWARE

EXPORT BUSINESS : .-19.7.?®

fi) ORGANISATION AND REGISTRATION

(11) EXPORT LICENSING PROCEDURE

Uai)HOW TO EXPORT (MODES OF OVERSEAS

SELLING}

(IV) WHERE TO EXPORT (IDENTIFICATION OF EXPORT

MARKETS)

(V) TO WHOM TO EXPORT (SELECTION OF

PROSPECTIVE CUSTOMERS)

(vi) SKILLS FOR BUSINESS NEGOTIATIONS

CHAPTER-3: EXPORT PROCUREMENT. SHIPMENT AND PACKING OF

BRASSWARE BUSINESS s . ??. .". ?^

(i) EXPORT PAYMENT TERMS

(ai) DUALITY CONTROL & PRE-SHIPMENT INSPECTION

Page 10: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

(ill)EXPORT SHIPPING DOCUMENTS

(iv) LABELLING, PACKING AND MAKING OF EXPORT

CONSIGNMENTS

CHAPTER-A: MARKETING CHANNELS OF BRASS HARDWARE AND

64 - 69 ARTWARE BUSINESS :

(i) DISTRIBUTION CHANNELS ABROAD

(11) MAJOR EXPORTS OF BRASS HARDWARE AND

ARTWARE

CHAPTER-5: EXPORT FINANCE FOR BRASS BUILDER'S HARDWARE AND

70 78 ARTWARE BUSINESS;

(i) PRE-SHIPMENT FINANCE OR PACKING CREDIT

(11) POST-SHIPMENT FINANCE

(iii)POST-5H3PMEi4T EXPORT CREDIT DENOMINATED

IN FOREIGN CURRENCy SCHEME (PSCFC SCHErtE)

(iv) DEFERRED PAYMENT TERMS AND PROJECT

EXPORTS OR MEDIUM AND LONG TERM CREDIT

(v) FOREIGN CURRENCY LOANS/CREDITS

CHAPTER-6: EXPORT ASSISTANCE AND FACILITIES TO BRASS

79 - 90 BUILDER'S EXPORTERS ; .......

CHAPTER-7: PROBLEMS FACED BY INDIAN BRASS BUILDER'S

91 - 96 HARDWARE AND ARTWARE EXPORTERS ; ...

97 - 102 CONCLUSION AND SUGGESTION ; .......

103 - 122 ANNEXURES ...

123 BIBLIOGRAPHY

Page 11: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

CHAPTER - 1

INTRODUCTION :

(i) Historical Background :

Brass Bailder's hardware is a multi-product group with

a wide range of metal fittings and fixtures used in

buildings and houses. The items mainly falling within the

range of this group, includes hinges, door closers, flaps,

tower bolts &. hooks, locks and padlocks, door and window

fittings, curtain rails, bathroom fittings etc. These

items iTiay be iT;ade of iron and steel , brass and aluminium.

BraEs srti'iBrB in India is a labour-intensive cottage

industry widely spread all-over India. Various items such

as artware of copper, brass, bronre and other alloys, and

base-metal decorative articles came under the general name

artmetalv'jare. However, metalwares of brass/copper

prt?dominate. Although ther craft is spread throughout the

country, crafts-manship varies from place to place which

reflects in the variety of product range. South is famous

for brDn:ne or copper idols of gods and goddesses and puja

specialities lake temple craft items, lamps, etc. whereas

Ncrth is known for traditional brass artnsrs decanters,

bangle stands, etc. Now the trend is towards souvenier

items like ash trays, paper weights and the like.

Although this industry is spread all over India, the

significant centers for this industry are U.P., Andhra

Pradesh, Madhya Pradesh, Orissa, Rajasthan, West Bangal,

Haryana, Jammu and Kashmir, Kerala, Bihar, Gujrat, Assam,

Delhi and Pondicherry.

Page 12: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

(ii) International situation of Brass Builder's hardware

and artware;

It is observed that major importing counties are USA,

Canada, West German/, UK, France and Netherland. These sax

counties together accounted for over 52 percent of the

total global imports c-f builders' hardware now-a-da/s.

Amor:gst the major e.iporters of builders' hardware are

U/est Qer;TiSiriy, USA, Italy and Austria. While, world exports

of base-metal decorative articles have increased now. The

major suppi/ing countries m the order of importance were

Italy, Republic of Korea, China. India, West Germany,

fvetheriand and the Wf . India occupies the fifth position

m £f ipcrtang artmetalwares m the world market-

(iii) Structure of Industry in India ;

Builders' hardware industry is pre-dommentl/ concentrated

m the decentralised sector. Though there are eight units

m the organise sector registered with the Directorate

Gentsral of Technical Development (DGTD), located m

Maharashtra. Gujarat, Uttar Pradesh, Delhi, West Bengal

and Punjab, this industry got developed m decentralised

sector owing to the SSI reservation policy of 19'''4. No

precise mformatiDn about the number of units. their

capacity and production at national level is readily

available. However, according to the knowledgeable

sources, various types of builers' hardware items are

produced in the states of Uttar Pradesh, Tamil Nadu,

Maharashtra, Punjab, Kerala, Gujarat, Karnatka, Delhi and

Haryana. The industry m the state ot Uttar Pradesh

specialises in the manufacture of brass builders' hardware

items.

Page 13: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

Being l a r g e l y c o n c e n t r a t e d an t h e d e c e n t r a l i s e d s e c t o r ,

p r e c i s e i n f o r m a t i o n a b o u t t h e number of u n i t s engaged i n

t h e m a n u f a c t u r i n g of b r a s s b u i l d e r s ' h a r d w a r e and l o c k s i s

n o t a v a i l a b l e . However, based on t h e d i s c u s s i o n s w i t h

Indus^try A s s o c i a t i o n s and knowledgeab l e p e o p l e i n t h e

i n d u s t r y , t h e number of b u i l d e r s ' h a r d w a r e itesris

manufacturir jQ u n i t s and lock making u n i t s i n t h e s t a t e can

be p-tt a round 13S and i S 0 3 r e s p e c t i v e l y .

The d i f f i c u l t y m e s t i i n a t i n g t h e number of ffianufacturj.ng

u n i t s 15 a l s o ds-se t o t h e p r o c e s s e s f e . g . c a s t i n g ,

er .gravir .G. c a r d i n g , f i l i n g , b u f f i n g , p c - l i s h i n g e t c . ) of

p r o d u c t i c n t h r o u g h which t h e ite/HS of i n d u s t r y p a s s .

Moreover , t o a v o i d t h e p r o b l e o s of Labour Laws and o t h e r

R e g u l a t i o n s l i ; ' e EPF, ESI , S a l e s Ta>: e t c . , t h e o r g a n i s e d

u n i t s p r e f e r t o g e t t h e work done from c o t t a g e and

househo ld s e c t o r u n i t s on " j o b " b a s i s . Acco rd ing t o t h e

i n f o r m a t i o n a v a i l a b l e w i t h D i s t r i c t I n d u s t r i e s C e n t r e ,

A l i o a r h j and a l s o on t h e b a s i s of d i s c u s s i o n s he ld w i th

I n d u s t r y A s s c c i a t i o n , t h e number of o r g a n i s e d u n i t s m

A l i g a r h ( i n c l u d i n g H a t h r a s ) , i s abou t 3 5 . B e s i d e s t h e s e ,

t r e r e arB 3 u n i t s m Moradabad and 2 u n i t s m Ghaziabad

engaged m m a n u f a c t u r i n g and e x p o r t s of b r a s s b u i l d e r s '

h a r d w a r e .

( i v ) Product Range;

Var ious t y p e s of b r a s s b u i l d e r s ' ha rdware i t e m s commonly

manufac tured by t h e i n d u s t r y m t h e s t a t e a r e a s f o l l o w s :

Door F i t t i n g s : Door knobs , door h a n d l e s , d o o r s t o p p e r s ,

k n o c k e r s , p o s t a l l e t t e r s p l a t e s , door n u m a r a l s , l e v e r

l a t c h or l ock , s h u t t e r knobs e t c -

Window f i t t i n g s : Window s t a y s , window "fastnersjwondow

Page 14: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

handles, window knobs, casement stays etc.

Furniture Fittings: Baby knobs, drawer/ cabinet pulls,

handles, brass corners, fastners, box locks, latchies,

wall catchers, key-hole co'^ers, dravier locks etc.

Assorted items: Statues, artificial Drnaraents, fire site

fittings, towel stands, coat/hat hooks etc.

(v) Exports of Brass Builders' hardware and artware;

India exports a wide range of Brass Builers' hsrdvfare and

artw^rs ite/ris to a large number of countries both in

developing and developed world. The traditional markets

for brass builders' hardware &. artware from Uttar Pradesh

have been U'~ , CBnada. and Australia. Though there are no

direct e,.ports to African and Middle East countries, the

importers m uV reportedly suppl/ such items to these

countries. E::port of locks from the State has become

almost negligible due to competition m terms of quality

and price.

E-.ports of brass builers' hardware and artware have not

been separately classified m the Monthly Statistics of

the Foreign Trade of India, published by DSCI & 3,

Calcutta. The information on exports is, therefore, based

on the statistics compiled by the Engineering Export

Prcmotion Council and the discussions held with the

Industry Association at Aligarh. According to the

existing practice. the brass builders' hardware

manufacturing and exporting units, by and large, produce

items on the basis of orders specifying the designs and

specifications received from importers abroad. These

importers reportedly re-pack the items and sell them

either in their own country or overseas in their own brand

Page 15: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

names. Sometimes even fninor modi'fications are made in the

assembl / of items b/ suich importers, as a part of t^«ir

marke'ting strategy. Specially, e.^ports of artwares bring

valuable foreign ex-change to the country's exchequer. The/

occupied the second largest position next to woollen

c^rpE?t5, rugs and druogts in India's exports of

handicrafts excluding gems and jeweller/. Exports of

artwares enjoyed a share of more than 25X in India's

e ports of handicrafts other than gems and jewllery.

(V i) Status of Brass Builders' Hardware and Artware

Industry in U.P. i

Tne state of Uttar Pradesh and particularly the Aligarh

centre there spec:iali5BS m the production of brass

builders' hardware items. Besides Aligarh, the units

producing such items are also located at some other

centres like Hathras. Moradabad and Ghaziabad. The

industry initially started as lock manufacturing industry

concentrated mcstl/ m cottage scale in Aligarh.

Subsequently, some of the units took up the manufacture of

brass building construction material. The skill and cheap

labour available for lock making could thus easily be

Ei-jitched over for manufacturing the casted brass builders'

hardware items. Today, Aligarh has come up as a well-known

centre for the production of brass builders* hardvi*are m

the state with certain facilities (e.g. lacquering and

polishing) which are otherwise not available at other

centres. \

The major artware industry centre in U.P. is Moradabad

followed by Aligarh, Hathras, Varanasi, Almora, Lalithpur,

Jhansi and Jalesar. For example, Moradabad is famous for

Page 16: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

its meenakari and brasware items in addition to hookahs,

flower vases etc. whereas in Aligarh animals &nd birds are

cast besides brass door-knockers, ornamental door handles

etc. In Hathras hanging lamps, flower vases, planters,

Tabetan wares, etc- srB being manufactured with

copper/brass and with white metal combination. Varanasi

is famous for its repousse work on brass/copper sheet,

Almora for Ganga-JajTiuna type of flower vas&s, planters,

kalas etc. of copper and brass and Jalesar for various

Sizes of ghungroos, bells, ghanties of brass and iron.

La2itp<-ir and Jhansi adopted the Dhokra type of castings of

Madhya Pradesh. In fact, from the look of an item, one

cars make out from where that particular artware emanates.

Ihs U.P. , there cire more than 17,0213 units engaged in this

industry and 1SS,2?S3 artisans are employed in this field.

Of them, about 75,!3SB artisans are employed in Moradabad

itself.

The total turnover is more than 46,000 metric tons valued

at Rs. 3329.S million and the production capacity can be

increased to about 74,837 metric tons according to the

y.P. Brassvjare Corporation.

U.P. accounts for 80X of India's exports of art

metalwares. Bulk of the exports are from the major

producing centre viz., Moradabad followed by Aligarh. 90X

of the production from Moradabad goes xnto exports-

Statues of Natraj, Tara, Budha and Radha-Krishna from

Aligarh are in demand in overseas markets. Of late, the

trend is towards European style of statues like sergeant,

angels, dancing couple and messenger. There is great

decRand for EPNS wares like tea pots etc. from Moradabad.

Page 17: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

Currently overseas customers prefer plain items rather

than the items with more craftmanship. Yet engraved item

enamelled by lacs are popular in Middle East and European

countries. EFNS Viares from Moradabad are more in demand m

USA, Australia and other European countries. Meenakari

iten)'5 find yheir market in West GeriTiany, Fraj-;ce and to

some extent in USA as well.

Page 18: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

B

OBJECTIVES OF STUDY;

The m a m objective is to study the export procedure of

brass builder's hardware and artware from India with

specific reference to Alzgarh and Moradabad and its

e.iportmg probleiTis. These are as follows:

(a) To stud/ the general situation of Bras Builder's

hardware and artware industry, like ;

ix) to study the status of the e.-iports of the Brass

Builders hard'r-iarB and artware business

1^i) to highlight the product range of these industries

Sill) to Htud"/ the majar cc-t-intries to e.N'port these items

(b) To study the procedures of stating the Brass Builder's

hardware and artware e.-jpcrt business.

<c) Te study the marketinq procedures of the Brass

Builder's hardware and artware e;;port business.

(d) To study the export dccuffientation and its procBdureB.

(e) To highlight the problenis faced by Indian Brass

Builder's hardware and artwares, in exporting these

products.

Page 19: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

9 METHDDDLDGV:

Most of the data for this stud/ has been obtained from

secondar/ sources of Go^t, agencies liVe :

(i) Indian Institute of Foreign Trade (IIFT)

(ii) State Trading Corporation of India (STC)

(iii) Trade Developnient Authority of India (TDA)

(iv) Sroall Scale Industries Export Promotion Council

(v) PHD ChaiTsber cf Com/Tierce and Industry

(vi) Engineering and Exports Promotion Council (EEPC)

(vii) Etports Promotion Council for Handicrafts (EPCH/

(viii)Federation of Indian Ch&mhBr of Commerce and

Industr'/ i'FICCI) etc.

The secondary data for the study has been suppleniented fay

m f c-r/natiDn from the people who arB dealing in the

manufacture and e,-,ports of these products. To gain more

information J personal interviews of e-iporters from Aligarh

?: t^oradBbad were conducted.

LIHITATIDNS;

(i) This study covers only the products which fall under

the category of finished Brass Builder's hardware and

artware.

(ii) The data for different aspects of the study was not

available for the same period of time. This led to a

slight lack of comparability.

(iii) Data for very recent years was not available.

Therefore, most of the inferences and projections from

available data only.

(iv) The personal interview of exporter's and analysis has

been done and this always has been interpreted in the same

sense- If there was any bias in their answers, something

Page 20: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

CHAPTER - 2

HOW TO BEGIN A BRASS HARDi ARE AND ARTWARE EXPORT BUSINESS:

(i) ORGANISATION AND REGISTRATION :

OrqanisinQ vourselves :

The first step anvolved in setting-up a new firm, is to

name yoarselves. The name and st/le cf the -fxrui should be.

attractive' 'short'and ' nieanagf ul ' . For e,sample, one may-

add the r^ord "International" or "Overseas" to so/ne name of

a perBZf-r or flower. The addition of such words gives a

T.eanmc to the fxr.Ti and also e/plioit-/ that the latter

:^epiB m s-port business. Moreover, one should picJ- such

a n^fne; E -iiibol or lego which reinforces coj'!pariy'5 name and

creates an iijiane xn the mind of persons who will see its

let•'-er .e d end business cards- One shot-Id go ahead with

printing of good letterhead, envelopes and obtain "Cable"

address. telephone. tele.-;, etc. The information to be

given m letterhead should essentially include.

1'. Cc~plete naiTe and address including the company's

na.T.e,

111 Cable address,

111'' Sere outstanding achievement to the credit like

ha,-ing got an export award etc.

Cne may also give his-'her banker's nanie and address. Open

a current account m the name of the firm under whose

title vDu intend to export in such branch of commercial

bank which authorise to deal in foreign exchange.

A firm's registration under the local law like the Shops

and Establishments Act with the Chief Inspector of Shops

and Establishments of the state where the firm is located,

will render credibility. Apply to the Income-Tax Officer

Page 21: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

l i

having jurisdiction over the firm for the allotment of

Permanent Account Number, m case one do not have the

same. It is to be cited in the form for allotment of

Exporter's Code Number by RBI. In case, this number has

not been allotted, one may Btill appl/ for RBI's Code

Number b-/ giving an undertaking- Whereas proprietor/

firms {ViExy get the Permanent Account Number without

in-zDlving much time, the partnerships or other firms may

require a longer time in its allotment.

Registration Formalities ;

Although it is not essential to get such registration if

ars has constituted a proprietory or partnership firm's

registration. It nxW only help in the legally

establishing identity for obtaining other registrations

like- that for telephone or tela.s connection in the name of

the firiTi. Besides, one should register it with the Chief

Inspector of Shops and Establishments, wherever it is

applicable the foremost formality for e^^port relates to

obtaining of an E,-;porter'5 Code Number under the Foreign

E.\chsirfqE: Regulations. This "Wu/nber' is to be cited xn the

Forms of Declaration known as BR and PP which 3.re lodged

with the Customs/Postals authorities along with other

documents at the port of shipment.

For obtaining the RPI Code, one should apply in the

prescribed form CNX (in duplicate) to the regional office

of the RBI having jurisdiction over head office. This

form and its enclosures ars given at Annexures (1~3A).

The bank sends its report to the RBI an the form at

Annexure (4). Thus, along with the form CNX (annexure 1),

send the following documents.

Page 22: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

12

I. Certified copies of Certificate of Incorporation,

^5emDrandum of Association, Certificate of

registration and constitution of the firm.

II. Photocopy of the RBI'5 permission under section 30 of

the ForeiDn Exchange Regulations Act, 1973, if the

non-resident mterst m the firm exceeds 43'/..

ill. Photocopy of the letter frod; the Income Tax Officer

allowing a Permanent Account Number or General Index

Registration (SIR) Number.

1.'. A declaration of the effect that the proprietor,

partners or directors, as the case may be, as per

Details c; the applicant's associate firms. (as m

BVinexurs 3A).

The E/.porters Code Number is given temporarily for a year

so if the Permanent Account Number is not allotted.

Otherwise, it will be valid for ever till it is withdrawn

or cancelled. As, such, RBI ' s Cede f>4umber has no date of

expiry. In addition to the Exporter's Code Number, every

person whether an individual or a firm or a company

exporting or importing goods from or into India will

require Importer's-Exporter's Code ( EEC ) Number unless

specifically exempted by the CCI & E etc. For obtaining

TEC No., apply m the prescribed form (annexure 6 ) , and

the following documents in duplicate should be attached

along with it.

I. Bank Rceipt/DD for Rs. 500 for payment of fee.

II. Income Tax Permanents Account Number, OR

III. Sales Tax Registration Certificate etc.

The lEC No. allotted to a firm valid till it is revoked.

Page 23: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

13

The Regional Import-E-iport Licencing Authority may also

issue identity cards to the authorised en/plD/ees of

importers/ expoters. The identity card will facilitate

collection of licenses and other documents. The

applLcation form for identity card is same which is for

lEC Wo. It should be filled in and sent along with two

CDpies of photographs (duly attested by the finri) m

respect of the representatives.

Registration with E-;pDrt Promotion Councils and other

a-jthoraties helps m obtaining facilities and services

pro/ided by these organisations. It is also necessary for

-• Id elii lible to obtain facilities and benifits m terms

Fz,^ Procuring eAport goods fro.T;

•Tianufacturers or exporters, or e-N-porting goods free of

salES ta-, get yourselves registered with the Sales Ta^

DepartsTient of the state. The procedure for such

regastratxon is simple exept that you have to arrange for

a tEw-.rety/ secaritv from another Registered Sales Ta,

E'sa]Br ard iTiust possess some experience m local or inter­

state sales of the commodity concerned. All manufactures-

B-iccrte'--5 and /r.erc hant-exporters engaged m exporting

e.cisable goods under 'bend' are required to open and

•T.a" tain a Running Bond Account (RBA) with the Maritive

Collector of Cerstral Excise. However, SSI Units whose

clEaranceE of goods do not exceed Rs. 20 lakhs of items

failing m One Chapter of the Central E);ci5e Tariff

Schedule or Rs. 30 lakhs where clearances of items

follwmg more than cne chapter of the same schedule, are

exempt from excise duty. Hence, they can remove their

goods for export as for home consumption without payment

Page 24: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

14

of duty, if they fall in any oi these two categories.

Product Selection :

Ltndoubtl/, every product has market. But still selection

oi a right product is very essential for success in

selling whether in the country or overseas markets,

inhere you yourselves s^re a manufacturer or engaged in

particular kind of sevice, the choice is obviously

restricted or perhaps there is no choice at all. But

sphere ycu want to start as a merchant-eJtporter not having

yo--,r Oi^ir; mariufactu^iriQ facility, you must choose your

B port product teiking into consideration your own

background and ej^perience, financial resources, deiTiand and

suC'ply situation in the country and overseas.

Page 25: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

15

(ii) EXPORT LICENSING PROCEDURE :

Export Policies s

Every product has a market. Even then, one has to be on

the lookout for overseas importers. Nevertheless, export

control IB to be imposed at tames, but its scope is very

limited. There ars also a few basic requisites of

selling overseas. Determination and planning are the

basic requirements. Overseas selling begin with a state of

m m d . The Government of India hav-e been continuously

endeavouring to provide facilities and assistance to

impart purposiveness and dynamism to diversify its

e--:pc""t5. It has since July, 1991 announced a series of

meaBiires including the new EXIM (E^sport-Import) Folic/ for

a long period of fiv-e year 1992-97 to impart it greater

stability and continuity. Besides, this measure, thp

LERMS (Liberalised E?;change Rate Management System) have

been put into effect by the RBI. The liberalised EXIM

scheme renders international trade almost free of all

control 5.

The Liberalised E.:changt^ Rate ManagesTtr-nl Systt-in (LEPMS)

has put infTL/ effect, a dual e/:clianye rair- system whereb/

6t3y. of all exports proceeds of merchartd3'=e and invisibles

are CDn-^erir-d into rupees at market rate, thereby,

bringing higher ruper- earnings for e;;porters. Thus

abolishes thi= cumbersome system of export incentives.

Ei.'porters ArB now allowed to maintain Foreign Currency

Accounts m Iridia and abroad wherein 157. of 607. of their

exports prrceeds cars be deposited . There is a general

libral 1 t>a! lun for- otrtaining FE for visits abroad and

remittances corsni-cU-d with exports.

Page 26: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

16

The other export promotion measures instituted by

Government include -facilities and assistance to achieve

effec-iency at %'ai'3Dus stages of e;',port production and

marl'eting in fs^^ery sector. Several institutions and

organisations have been set up to help Indian Brass

builder's hs^rdwarF and artware trade in overseas seles.

These can be studied under different heads as given below.

I. Informatory institutions and publications.

II. Training and Research Centres.

III. Etport production circles.

IV. Marketing assistance

V. Marketing development authorities-

Export Trade Control;

Export trade contol is exercised on exports of such

commodities arcd ser vices which art very vital to the

economy. The primary object of Government is to promote

exports to the mar.niiuin extent, but m '^lUcti a manner th£«t

ecDnomy of the country is not effected by unregulated

exports of itenis essentially needed v^ithm the country.

Exports conLrol ts, thus, exercised to a ^/Bry limited

extent in resfjtc t of minimum number of items.

In terms of Exports Order, exports can be made to any

destination except Union of South Africa, Fiji and Iraq.

There 3 5 a complete ban on trade with these countries. No

diBcrimination is made between one country and other m

the matter of issue of licences. Border or Frontier trade

between India and Tibet region of China may be allowed on

restricted basis. Export licensing policy for different

Items included m EXIM policy and Handbook of Procedures,

19~'2-97. Since e ipoi t restrictions depend on a number of

Page 27: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

17

variaDle factor?, the cDntinuation of a particular e>:pDrt

policy ifi r€-gard to any item should not be taken ior

grnrtfRr) < r,r ,-,11 h i me?.. E>:portf?rB must, therefore, keep in

touci. With thie Public Notices and e>;ports Instructions

issued by the E-^:port5-Trade Control authories.

Export Procedure :

a) Registration and Invoicing :

Any person applying for a licence to export or import or

•for any other benefit or concession under the EXIM Policy,

1992-97 shall be required to register himself with an

approperiate authority and obtain the RCHC (Registration-

Cum-Membership Certificate) Number. Every e>;poter is

required to obtain a lEC Code Number too. All e>jport5

contracts shall be denominated in freely converitible

currency which is also known as invoicing. Contracts for

which payments are received through the Asian Clearing

Union (ACU) may be denominated m the country of the

exporter or importer, or in any freely converitible

currency and all stich payments shall be deemed to have

been received in convertible currency. Exports to Rupee

Payment Area (RPA) countries may be made under the terms

of the Table Agreement or Protocol signed with such

countries. Hovjever, e>rports to such countries against

pa>ments in non-converitible Indian rupees may be required

to be registered with such authority as may be specified

in this behalf.

b) Procedure of Obtaining Export Licence :

For obtaining an e^iport licence, an application is to be

made, in duplicate-, in the form given in Annexure (7). It

should be accompanied by or copy of the export order, and

Page 28: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

IB

Bent to the CCI?<E who may consider such applications on

merit and issue the e>:pDrt licence. The export policy

contains rela ntion covering exports of products which are

subsequently put under e^jport ban or export control, but

for which exporters have already entered into agreement

with overseas buyers.

The licensing authorities for e> ports licences etre^ either

the CCIJfE himself or the Regional Licensing Authority.

Applications for exports licences are to be made on

prescribed torm (see Anne^-ure 7) along with relevant

documents, howevc^r , the application form for grant of

permission ior e .-port of imported goods is different-

There IS no application fee on exports licences or

permits.

Basics of Export Marketing :

Export mcrirketing is comparatively a highly complex and

scientific activity thc- n domestic selling. Therefore,

there are a few basic requisites of overseas selling which

a prospecl-jve exporter must not only fulfill at a

particular point of time but also continue to keep himself

always abreast of Ihem.

1. Determination :

The prime requisite of export niarketmg is determa nation

to sell abroad. E,;porting is not a "Casual business" and

international markets not a place to get rid of occasional

surpluses, "the m-and-outer mai-es no enduring impression".

Overseas sellir.g began with "State of mind" and one should

initiate this activity with energy and determination and

with the intention of preserving in it.

Page 29: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

19

i i. Planning :

The planning D |- one's productior, and marketjing activities

5hDu}fJ be CDir.pletei/ atlDned to internet ions,!

requirements. There has to be a proper planning at all

stages, of manufacturing and selling with a view to

ensuring that export requires at least receive the same

attention if not more than the doirieetic order. Export

/rsarketing may rather require planning on entirely

different scale m production, marketing and promotiDnal

departmentB-

iii" Production Capacity s

International markets are very large vjhich can absorb any

amount of a commodit/. It is imperative that one has a

look on one's production capacity to see how much one

could sell abroad. Before looking for international

markets and making commitments to sell, one should be sure

about the production that would be avaiiabe after meeting

the current domestic requirements.

iv. Quality and Standards :

Goods for vy.pnrl must be produced according to

interna tiortai standards like ISO : 9G00 and

specifications which may be quite different from the

national. So, it is essential that exporters sfiouId

collect information on latest standards and specifications

prevalent in thf- ni&rkets where goods STG proposed to be

e>:ported. GovBrnnienl have put into effect a comprehensive

programme of quc-lity control and pre-shipment inspection

under thr- E;;port (Huality Control and Inspection) Act,

i?63 for a number of products, though exporting units

should adopt inprocess quality control measures even in

Page 30: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

20

caL-e nf products whf r o compulsofy quc-ilit/ conirol has not

beeri prescf i bfd .

V- F^rpduct Innovations and Adaptations ;

RequireinentB of international markets may differ

marginally aruJ &',;lt'n'sj vely from the products sold in

domestic market. Facilities for product modification and

adaptation should not only e>;ist in tde unit but also the

management be prepared to do so. Moreover, the management

should be able to take quick decisions and provide

necessarv whcrewjthal so that soffiebod/ else mi^y not taVe a

lead as there are many competitors xn xntn-rnis\.xonal

markets.

vi. Financial Resources r

De-zelopjijent of new inarkets, particularly overseas,

requires large fmaricial outld/s m terms of

correspondence, product literature tn different languages,

market research, pi rsonal visits .md credit facilities

etc. Government and other assistance may not be availabe

quickly' anil 'nonf y JL'> blocked with dafferi-nt or garii sa ta oris.

Additional amount will be require to be spent on personnel

spc-cidl ised m export techniques. Taking into account all

thoE^e factors. the management should be willing to

allocate financial rL-sources especial 1/ for export.

Page 31: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

21

(lii) HOW TO EXPORT (Modes of Overseas Selling)*

Basiclly, there are two methods of export selling- direct

and indirect. For direct exporting, the firm makes its own

arrangements either within the existing selling opparatus

or by setting up a separate and different department to

handle e^-port transactions. In case of indirect

exporting, the firms sell through an mtemediary like

merchant-e;^;pDrter, Exports Houses, Exporters, Export

Consortia and Trading CorpDrations etc. though, the

choice between the two methods of selling depends upon

different considerations, important of them being the

amount of money and effort one wants to put in, it ma/

some times be obligatory to operate through agencies like

STC through whom exports of certain products arB

chanalised. There are also cases where both the metods

are emplo/ed.

3) Indirect Exporting s

1- Merchant-Exporters :

There arB several merchandising houses as direct from

Registered E^iport Houses specialising m export of groups

of products to a number of countries, and mostly

operating m metropolitan cities like Delhi, Bomba/,

Calcutta and Madras. They usually make an outright

purchase of the product and sell under manufacturers

label. They may also put their own label as agreed upon

between the parties.

ii. Export Houses/Trading Houses 1

Merchandising and Manufacturing companies fulfilling

certain criteria are registered by tYiB Government of India

for Strengthenirrg their negotiating capacity for sells

Page 32: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

22

abroad, bualdjng up a more eriduring relationship between

them and thaer supporting manufacturers, enabling them to

keep their manufacturers of export products supplied with

iniportpd raw ln. Lt r i ril G from rend/ istocks, and fo de/elop

cooperative relations with their counterparts in overseas

markets. This list of Registered Export Houses can be

obtained from the Federation of Indian Export

Organisations, New Deiha.

ii-•'• • CanallsinQ Agencies s

Government and other canalising agencies like the STC and

its subsidiary Projects and Equipment Corporation (PEC)

besides e?:porting canalised items, also undertake overseas

selling of other prodects. Since many of these agencies

are also registered as Export Houses more or less, the

same as explained above.

IV. State Trading Corporation :

The canalising agencies, however, provide special

facilities and assistance to their supporting

manufacturer-suppliers, and have evolved different systems

of procuring and exporting canalised and non-canalised

items. Since, STC is the most important among these

agencies, an attempt is made here to briefly indicate the

procedure evolved by it for enrolling suppliers called

'I^U5lnes5 Associates' and the facilities given to them,

b) Direct Exporting ;

In case the firm decides not to operate through any of the

intermediaries described in the earlier paragraphs, and

opts for direct e.iporting, it will have to most carefully

choose between one or the another type of export sales

organjsation to be created. If its 'export plans are

ambitions' and prospects for selling to a number of

Page 33: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

23

marl-ets promising it will need a more elaborate set-up'.

If the firm it, (nal'iny a mere modest t:>tart, the appointment

of an export managpr plu"; a clerk may be sufficient. The

different t/pes of sales organisations that may be

advanteously adopted by the ixrinb, depending upon their

plans to fe;;pDrt and products and markets are indicated

belDw.

i. Added Responsibilitv to Sales Personnel :

The farms wishing to start export business may an the

beginning give added responsibility of handling export

marketing to existing sales personnel. This arrangement

seems sample and economical and it usually works well,

B&pecialiy if a company's export sales are largely

concentrated in one or two areas where the documents

demanded are not complicated and credit or shippang

problems a.re few.

ii- Export Techniques s

The staff to be trained for eitport sales will, however, be

required to be given tre^ining m export mar^etlng

techniques. These training facilataes are available with

a number of instatutions and at unaversity and college

levels etc,

iii. Export Company :

Depending upon the farm's export sales turnover, existing

and potential, it may consider settmg-up a separate

export company. This company may ultimately turn into a

Registered E-:port House dealing with not only parent

firm's products but also other firms. Normally, this

company buys a certain amount of production from its

parent company and the latter bills it as it does any

domestic customer.

Page 34: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

24

CO

o

cd

O "co c:

_o

to CO "c CO C3}

6

>

CO a o O

c 0

CO Q l CD Q

O a X

LLI

** c « Fi 3 O o u •d o> c o o >

a

c a. Q.

£ to «0 • » tm

o a C9 c OS

H CB c

J<

o 0. f

<0 •8 H

c e o> < <« I .

o 4 i «

3 X> i .

CO

a <0 « « 0

> o < «0 q

e

« a. O ia. E

• 0

« > O -i

_: a

Page 35: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

25

(iv) WHERE TO EXPORT :

(Identification of Export Markets);

The whole universi^ can be potential markets for brass

buxlder's hardware and artware products. But individual

and specialised £*pprDach is essential to cater to each

country's requirements. There are a number of agencies

which provide help to locate the markets overseas, in

addition to the various publications.

In the selecton of potential markets, the primary task is

to identify the areas where products similar to these of

the prospective ejiporter, are currently sold either by

India or other countries. A number of organisations have

been set up to help the exporters in this task of

idefntification. These include the,

i. Ministry of Commerce (Commodity and Territorial

Sections).

ii. Export Promotion Councils.

iii. Federation of Indian Export Organisations (FIEO).

iv. Indian Trade Promotion Organisations (ITPD)-

V- Development Commissioner (Export Promotion

Directorate) for Small Scall Industries.

The exporters should establish a contact with the nearest

organisation. In addition, a little orgar/isation' s

library is advisable to identify the markets.

Sources of Informations :

i. National Export Trade Statistics :

The step to identify market is to compile data on India's

exports of the product concerned, published in the Monthly

Statistics of Foreign Trade of India (Vol. l-Exports and

Re-Exports) by the Directorate General, Commercial

Page 36: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

26

Intcsllxgence and Statistics, Calcutta and the bulletme

brought out b/ EP Councals. Only March' issue of these

"bulletins" need to be referred to. Data m the 'Monthly

statistics' a^re published on comniodit/ and on country

pattrern. The code numbers of each product may be

ascertaiT.ed from the book "Indian Trade Classification

based on Harmonised System of Classification and Commodity

Description" by the DGCI&S.

^i• Ihternational Trade Statistics :

Even xf a product is either not currently e,<ported from

India or e,;ported m limited quantities, it may be that

same or sifliilar product is sold abroad by other countries.

If so, the exporter's product can aslo find a foreign

market.

111. Trade Accounts :

It may be useful to refer to ' Trade Accounts' or e,-:port

data published by leading exporting countries like USA,

United Kingdom and Japan or the major world producer of

products. All these publications might be available m ^tiy

good library like that of IIFT, ITPO, Ministr/ of

commerce, DGCJ & S, Calcutta. Embassies and consulates of

country concerned arp, however, the best sources.

To whom to contact :

At this stage the prospective exporter might feel somewhat

baffled about the source from which to obtain information

on the given aspects. One may feel that he can not

collect this information without" expert help, and truely

so- The e:pert advise is availabe from different sources,

beE.t of them being the Ministry of Commerce (Froeign

Trade/Ter>-rxtoria] Division) and India Govt. Commercial

Page 37: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

27

Representatives Abroad. The E,;pDrt PromotiDn Councils

concerned as also the foreign offices of State Trading

CorpDrataon iSTC) and India Trade Organisation (TPO) are

the other specialised offices tn provide information on

different aspects. The Emhaasies/Consulates of foreign

countries in India can also provide useful information.

Appraisal of Markets;

To achieve success m selling the one's product in the

markets identified and picked-up on the basis of export

data and other information described in preceeding

paragraphs, it would be essential to make an appraisal of

these markets m terms of demand and supply of the product

concerned, competitiDn, prices, business conditionB and

trading practices, distribution methods etc. Collection

of information and ats proper enal/sis on these aspects

would help in the assessment of proper size of the market

and the strategy needed for not only initial success but

also deeper penetration at ^n acceleratBd rate.

Report of Market Surveys and Trade Delegations s

Market studies and surveys for one commodity m ortE:

country or a number of countries and for a number of

commodities m one country are conducted regularly by

different national export promotional organisations and

intE?rnational agencies. Their reports contain detailed

information on marketing prospects of specific products in

particular country. Information on marketing aspects is

also available from Lfio reports of trade delogatiouD and

study-cum-saies teams sponsored by different

organisations. All these informations are published and

availabe from concerned or following organisations.

Page 38: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

2 8

i . E>;ports P romot ion Councils/Corrimodit>' B o a r d s ,

ii. India Trade Promotion Organisation,

ixi. Indian Institute of Foreign Trade,

iv. Chambers of Commerce/Trade Associations-Reports of

Trade Ddegations/ Study Teams,

V- Reports of the Surveys by India Government Commercial

Trade ('Representatives Abroad,

vi. Internationa] Trade Centre (ITC)-UNCTAD7GATT,Ganeva

(Switzerland) and ITC, Brussels, etc.

Bibliography :

An e;;haustive and useful' Bibl iography on Overseas Market

Surveys of India Products', has been published by the

IIFT, while the e):porter should obtain a copy of this

Bibliography which is priced very low, a reference to the

concerned Export Promotion Councils and bodies like FIED

and IIFT is also advised. Expoters should also contact the

ITPD which though has not published any bibliography, is

maintaining products and country's information in a well

classified manner.

Contact with Exporters :

To establish contact with exporters of similar but non­

competitive products as also e^;porte^5 of other products

to countries where one wish to sell. Members of the

associations who have been in business and travelling

abroad could be very helpful in giving information, if not

directly related to the product, at least on general

aspects on commercial and trading practices. Similarly,

man/ large scale &,-:pDrters and E.- iport Houses might be

willing to share their information and experience with the

small scale expoters. Personnel in various organisations

Page 39: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

29

like 11 FT, ITPO, EPCs and also chamDers of Commc?rce, who

have' been researching into the various markets could be

the best source for information m this regard.

Foreign exchange departments of comir»ercial banks do

possess a lot of information which is useful to exporters.

Being dealing wath different products and countries, they

collect varjcd type of information and may be willing to

share with their clients. The Trade Representatives of

foreign countries in India could also be helpful m

collecting necessary information on their countries.

Besides, they can tell us the names of trade associations

m their countries which can be contacted for detailed

information.

Page 40: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

(v) TO WHOM TO EXPORT :

(Selection of Prospective Customers) :

To find out p)ro5pectxve customers and that too in

overseas markets is the most arduous task. But a

little exercise and contact with different agencies

backed by a concerted follow-up action on ths

information provided by them will help the exporter in

locating overseas customers. But selective approach will

prove to be advantageous. It usually takes a long time

in finding a serious and right customer, who is

intEsrested in exporter's products. Similarly,

institutions like banks, shipping companies and custom

houEJes are supposed to keep secret the names of parties

to whom exports are currently effected by other firms.

HDW€?ver, the exporters should not feel disheartened on

account of this probleiTi. These are not peculiar to

international markets and apply equally to the domestic

selling. There are a number of published sources of

information and organisations which provide information

on prospective customers in overseas countries. It

just requires a lattle exercise and contact with different

agencies and follow-up action on the information

providi.'d by thuiii.

Market Surveys/Delegations Reports :

The best source to locate inporters of various products

in different countries is the reports of market surveys

and trade delegations brought out by various national

and international organisations. Almost all the reports

contain names arcd addresses of the importers of products

relating thereto. Some reports even contain buyer's

Page 41: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

profiles which indicate not only the name and address

of t ie xmportet but also essential business information

like his specific interest xn terms of product and its

quality, armual requirement, business standing and above

all the "Contact E,-;ecut3ve" .

Trade Directpries/Jpurnals :

Another source to locate overseas impoters is the Trade

Directories or Journals published m India and abroad.

However, while refeiring to Trade Directories one should

look for only their latest editions. An essential

limitation of most of the Trade Directories is that the

various items are grouped under broad heads whereby one

15 not able to locate the importer of product of one's

direct interest . Journals or periodicals also suffer

from the same limitation as Trade Directories wherein

a number of items sre grouped under broad heads.

However, journals take march over directories as they

are published on regular intervals whether weekly,

fornightly or monthly as against the former some of

which are nol even published evt-ry year. while, some

of the journals/ periodicals iiiay be obtained regularly

by the exporters, it is not always feasible to go for

all the Trrtde Directories/Journals available m the

world ffiarkets. Therefore, one can look into these

publications an various libraries specialising m

business books. For e,;ample, one could find a number of

direc tor Les/j our rials xu the followirig placc-s :

1. Directorate General of Commercial Intelligence and

Stcististics, 1, Council House Street Callcutta - 700001

Page 42: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

-^2

ii., Indian Institute of Foreign Trade, B-21,

Instatutjorial Area, South of I.I.T. Campus, New

Delhi - 110016

iii . Indian "Fade Pr ornDtion Organisation ,Pragati Maidan,

Mathura Road, New Delhi ildSiQl

List pf Trade Drectories :

a. World Directories :

i. World Importers Directory by Kumar & Garg

Published by : Anupam Publishers

R-98, Mode] Town-II

Delhi-L0009

ii. Kelly's lidnufacturers & Merchants Directory

Published from : Neville House,

Eden Street

Kingston Upon Thames

Surrey Kill BY (UK)

iii. Kompass Publications

Published by : Kompass Schuliz Verlag AG

R. de, Hesee 810 ch. 1204,

Ganeva (Switzerland)

iv. B.D.I.

Published by : Bameinschaftsverlag GmbH

P.O.B. 110509

Speestr 9

61, Darmstadt IL (FRG)

b- Regional Directories :

i. Directory of Importers and Exporters in former

Russian (CIS) States-Country and Trading Profiles,

by Kumar & Garg, Published by: Anupam publishers

R-98, Model Town II~NEW DELHI

Page 43: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

13. Europ Produchion

Universal Register of European Importers

Published by : Europ Export Ed. GmbH

PoBtfach 4i334,

Berliner Allee 8

6100 Darmstand 1 (FRB)

111. Major Companies of Arab World and Iran

Published by : Braham A Jrofman Ltd.

20, Foubec t' "3 Place,

Regent Street

London _ WIV 1 HH (UK)

IV,, The Business Directory of the New Independent States

PubliBtied by : Market Knowledge Inc.

Dakbrook

Terrace

Illinois (USA)

c. Country' Direclpries :

I. Directory of United States Importers

Published by : Journal of Commerce

99, Wall Street,

New York N.Y. 10005 (USA)

II. Commercial Directory of Kuwait and Gulf States

Published by i Arab Advertising Agency Ltd.

P.O.B. 1779,

Safat, Kuwait

III. Australian Importers

Published by : Peter Issacon Publications

4649, Porter Street,

Praharn, Victoria (Australia)

Page 44: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

: 4

XV. J a p a n IrrtiJtj I n d e ; ; ,

J a p a n E.-sterrial T r a d e O r g e i n i s a t i o n ,

2!3, 1 oranui iK jn

2-ChDm&, M m a t o - K u ,

Tokyo- 105

TelBphone Directorxes :

"Yellow Pages" of the telephone directories of various

CDuntries contain classified list of prominent trading

houses of several important products imported into the

countries councerned. Since, the telephone books arSf b/

and large, issued ever/ year, the imformation on names and

addresses is up-to-date and accurate. These directories

can be referred to m central telephone exchange.

Journals/Periodicals ;

A number of periodicals brought out in India and abroad

report regularly' the names and addresses of importes of

various products m different countries. While the

journals published abroad are a little costlier, those

published m India do not cost much. Hence, the exporters

may like to subscribe to such Indian journals for keeping

themselves abreast with the latest developments in world

markets mcludirig nantes and addresses of the new buyers.

A fe'w journals are as follows ;

1. Indian Trade Journal (weekly; Published by DGCIS'S,

Calcutta and available from Manager of Publications,

Goverririient of India, Delhi-1100[}4-

(ii) Indian Export Bulletin (weekly) brought out by ITPD,

Pragati Maadan, Mathura Road, New Delhi—1.

(ill) Ex-Imp Times (Fornightly) brought out by Anupam

Publasher5. R-8. Model Town III, Delhi-9.

Page 45: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

: 5

<iv) Bulletin of EP Councils, almost ail the Export

Promation CounciIs/Commodity Boards are publishing

regularly periodicals which contain the overseas

enquiries.

(v) Business Opportunities brought out by Federation of

Indian Chambers of Commerce and Industry, Federation

House, Tansen Marg, New Delhi-110001.

Page 46: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

(VI) SKILLS FDR BUSINESS NEGOTIATIONS :

Conducting ijiternational business negotiations can be a

straightforward process if certain basic guidlines e^re

followed. Executives of small and medium-size firms

(SMEs) going into the international market place of ten

lack the required business negotiation skills. The

ability to negotiate effectively may be needed for

discussions with importers or agents when the firm is

exporting its products. Such skills are also necessary if

the firm is e>;ploring joint- venture possibilities abroad

or puchasing raw materials from foreign suppliers.

Negotiating with business partners located in other

countries is more difficult than dealing with local

companies, as the customrs and language of the counterpart

may be quite different from those at home. Such cultural

factors add to the complexities of the transaction.

Many leading business schools include specialized seminars

or courses on international business negotiations in their

programmes, Consulting firms also sometimes offer services

to upgrade a company's negotiation skills. But such

opportunities and services are often unavailable to small

firms in developing countries. However, export managers

of SMEs in these countries can improve their negotiating

techniques by following a few basic guidlines.

i. The starting point of the business negotiation process

usually goes from a situation of contention to one of

conclusion. "Contention" means that each party starts

from a different point concerning what he/she hopes to

achieve through the negotiations. "Conclusion" refers to

the final agreement between the two parties on what they

will pfirh undertake to reach a common Doal -

Page 47: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

: 7

^i- The intermediary Stage of the husineas negotiation

as the terms ciarxfication, comprehenszon, confidence,

convergence, credibility, concaliation <And concession BrB

basic phases m the negotiating process between initial

starting pQL-,jtioii and the final agreement.

"Clarification"and "comprehension" are the first steps

away from the situation of confrontation. In the case

above, both the exporter and the potential agents should

clarify their views and seel' the understanding of the

other party un the matters of particular concern. Next

step in business negotiation concern the concepts of

"credibility" and "confidence" attitudes that should

develop as both par ties discuss their requirements and

reasons behind them. As the negotiations proceed, the two

would gradually reach a "convergence" of views on a number

of the points under discussion. Following this would be

the step of " concession " and of " conciliation " In this

phase the final matters on which the two parties have not

already agreed would be settled through compromises on

both sides. The final step would be " conclusion " , that

is, the agreeftient between the two.

iii. The worksheets, as preparation for the negotiation,

the export e^iecutive can complete a worksheet for each of

the nine poant.-5 of the intermediary stage. Each worksheet

can list the problems and possible solutions or options

(or the stage of the negotiations concerned. The interest

of the other party should be taken m t o consideration in

drawing u|) thtse lists m the negotiation. In this way

the exporter can plan the tactics for the negotiating

process. The e,N'ercise should increase the possibilities

Page 48: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

of getting r&Bult? that are benefxcial to both parties and

therefore offer s certain guarantee of success,

iv. Negotiation Plan, as part of the preparations for

business negota ations, an e>:port manager should make an

assessment of the current status of the company, including

its strong and weak points. This can be done through the

"strengths. weaJ^enesses, opportunities and threats," or

"SWOT" method. It is a technique that often used to

assess business maric^gement tool, insufficient attention

has been giving to linking the result of a SWDT analysis

With the dev'sl opment of a business negotiations strategy.

The SWOT method eis u'-.ed for bu'sjne&s negotiation purposes

consists of I D O K m g at firm's production and assessing the

company's operatjons and management politics and practices

m the liyhl of those goals. The framework for this

analysis is rcntr key words, "strengths, weaknesses,

opportunities and threats". All aspects of the company's

activities B.rs revapwed and classified under one of these

terms.

V. Going into Negotiations, whesi conducting business

negotiatjons, e^'port executives should keep certain points

m mind that may arise as the discussions proceeds. This

points agajn all begin v^ith the letter "C", which make

them easy to remesnber. The situations which should be

avoided during th-e negotiations are- "conflict, controversy

and crilisism" vis-a-vis the other pc.rty. Whereas the

atlitudes that should be developed during the talks Bre

"communj cct ion , col ] nbur atj on and cooperation". Botti the

parties shuuld Kc-F-p jnto the m m d tJ-.at "change, coherence,

creativity, compromise, concessions, commodity, consensus,

commj Linent and coinpensatLon" are their goals of

discussions while going into busmeioS negotiations.

Page 49: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

CHAPTER - 3

EXPORT PROCUREMENT. SHIPMENT AND PACKING OF BRA8SWARE

BUSINESS;

(i) Export Payment Terms:

(The Letter of Crtsdxt, Bill of Ej-ichunqc etc.)

Export payment terms or the method of payment to be

settled wath a foreign buyer depend upon each customer,

the nature of buBiness, the customs of trade and above all

the foreign e^:change regulations of country concerned as

well as that of the buyer but of course to a lesser degree

in the latter case. Documentary credit or a letter of

credit (L/C) as it is known has gained

popularity in international transactions. The method of

rece?ipt for exports also depends upon the conditions laid

down by the Reserve Bank of India. The RBI has prescribed

the following conditions :

A: (i) Payment m any permitted currency in External Group

of Countries (all countries other than listed in at B&C>

or Rupees from the account of a bank situate in any

country m this group.

(ii) Payment of all eligible current transactions m

Indian Rupees or Asa an Monetary Unit (AMU I or in the

currency of the participating country m which the other

party to the transaction is resident in Bilateral Group of

Countries like Czechoslovakia and Romania etc. and Asian

Clearing Union lake Dengladesh, Burma, Iran, Pakistan (>

Sri Lanka e,:cept Nepal.

Bs In respect of e>;pDrt5, payment must be received m a

currency through an account appropriate m the country of

Page 50: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

40

-fanal place of deBlination of the goods as declared on GR

etc; iorms, irrespective of the country of residence of

the buyer.

C: Bovernment of India may conclude from time to time

Special Trade Agreements with some countries providing for

settlement of certain payments from the countries m a

specified manner or for exports to be financed from Govt,

to Govt. credits. Reserve Bank will advise authorised

dealers of such arrangements by issue of circulars.

Methods of payment applicable to the individual

arrangement will have to be followed m such cases.

D: The proceeds be realised withm the stipulated period

of 6 months for all countries, unless Dtherv^iise permitted

by the RBI. However, m case of export to Indian

warehouses abroad, like EEPC Warehouse at Rotterdam,

payment can be realised within 15 months.

Es Except m cases and save to the e;;tent covered by

general permission granted by RBI, payment for e.-iports

should not be received directly by e>;pDrter5 from their

buyers m the form of bank drafts, cheques, foreign

currency notes or foreign currency traveller's c^leque5

even though reimbursement against such instruments would

be received by authcu'xsed dealers Lhroug^l banking channel.

Payment Terms :

The amount of transaction must bear a satisfactory

relationship to the e,:porter'5 financial position or his

assess to outside financing, and to his total e!<poBure

with regard to a specific buyer or a separate country,

HowE?ver, credit rtanding of the buyer is probixbly the most

difficult factor to assess. In foreign sales the

Page 51: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

41

ordinary bank order may not be adequate without

corroborative evidence from other available Bources, such

as trade and commercial representative abroad of the

exporter's country who are sanctioned in the country in

which the buyer lives. Detailed credit information is

neither usually as widely available nor as readily given

in some foreign credit reports as in those from domestic

sources. The credit terms granted by competitors must

obiously be as liberal as customary in the trade or those

granted by competing firms, always provide that such terms

are reasonable in the light of the other factors under

consideration.

In financial condition of the e>:pDrter, the trade credit

granted abroad will generally involve longer period until

liquidation than a similar domestic arrangement. The

e>:porter must have adequate financial strength to carry or

obtain financing for the additional burden- The following

sources can be employed for obtaining information on

various aspechs of the financial condition of the

e/.'porters.

a. Commercial banks with international or foreign

departments.

b. Export Credit Buarantee Corporation of India,

c- Foreign offices of the EP council concerned.

d. Foreign distributors and agents of the exporter.

e. Indian's Trade representative in company concerned.

f. India Trade Promotion Organisation, etc.

Methods of Payment :

i. Cash & Carry Dr Advance Payment Method :

To sell the goods against payment in cash or by bank draft

Page 52: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

42

i5 moBt ideal. Under this method, payment is made by the

buyer or hit5 r^uthorised agent either along with the order

in advance through a demand draft or cheque duly certified

^good for pa/ment' by the bank. However, such "Cash and

Carry' transactions are almost non-existent. Although

this is the sitfest and ideal method from exporter's angle.

The latter in paying without any guarantee that fie will

rec€?ive the goods.

ii. Documentary Letters of Credit :

The documentary credit or letter of credit is the most

appropriate and currently adopted practice in

international transactions. It is a means to opening a

credit in favour of someone under which payment will be

made provided that certain conditions are fulfilled within

given time. The documentary part indicates that delivery

of the goods v-iill be effected by means of documents of

title. The documentary credit represents an arrangement

whereby a bank undertakes to make available a pre—

det«?rmined amount to a third party who is known as a

beneficiary. The "opening of L/C" is normally done

through the intermediary of another bank in the country of

the beneficiary. Though this is the general rule. It is

not usual for L/C to be opened or established in the

country of the opener. Moreover, foreign exchange

regulations of some of the countries may require that L/C

will not be established in the country of the importer and

negotiated therein. The parties to Documentary Credit may

be three or four nantely :

a. The buyt?i" - the applicant for the credit i.e.

importer.

Page 53: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

4:

b. The Bel lor i.p. eiiporter or beneficiar/.

c The banf- iSBuing the L/C i.e„ the buyer's bank.

d. Advi5ir(g/cDn firming bank or paying agent-issuing

bank's CDrrespondent bank,

iii. Document on Payment (D/P) or Sight Credit:

In this Biethod, an export order provides for drafts

payctble at saght, the goods Bre shiapped and documents sent

through Lhe bank to the buyer wkio obtains the documents

only on pa/ment. Even though the custody of goods remains

with the e/:porter untill the payment is received, he is

exposed to the risk of non- acceptance of documents by the

importer under this system-

iv. Documents on Acceptance (D/A) or Acceptance Crediti

In this case the importer is enabled to take delivery of

goods on the mere acceptance of claim i.e. by putting his

signature and signifying his vjillingness to pay the given

amount on the maturity of bills. This maturity will

depend on the period of credit granted to buyer, which may

vary for perjods like 30,60 or 90 days etc. subject to

limitations under the E>!charige Control Regulations. D/A

term are givs?n only to well-known firms of proven business

integrity and finanancial standing.

V. Revolving Credit - Cumulative and Non-Cumulative:

In this method, there is a regular flow of trade between

an e^:porter and importer is set up. The term of L/C may

allow to exporter to draw upto a specified amount against

shipment of goods.

vi. Commercial Letter of Credit:

The credit issupd by a bank directly in the name of the

beneficiarv is referred to as a Commercial L/C. Such

Page 54: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

credits UBUfilly fore' .e© that ;

a. The documents .ure negotiable,

b. The afTiDLint of the credit is payable at one or

several Lorrespondent banks of the issuer, and

c. The issuing bank undertakes to honour the documents

and imburse tu correspondent bank in respect of the

pa/mrnt it ha--- madB.

vii. Term Credits :

These enable an importer to open a credit in favour of

exporter but stipuU^ting that pa/ment will be made at a

later date, and noi at the time of shipment. It implies

that the importer is getting some credit from the

exporter. In such cases, the bank in the exporte's

country will issue him with vjhat is called a fine bill

which the exporter may discount if he needs money at once

or keep it If ho iz, allowed for the cost of the credit in

his price.

viia Bank to Bank Credit :

In this method, an intermediary ma/ be reluctant for a

trar^sferable L/C as he is to discuss to his buyer the

origin of the goods if purchased from elsewhere, for

export. Moreover, the transferable L/C can be cumbersome

when xt comt-c to obtaining amniF-ndments, etc. To avoid

such situation, one can request )(i5 ovin bank to issue a

new credit in favL.ur of his supplier on the strength of

the documentary credit which has been established in his

favour by his buyer.

ix. Traveller's L/C :

It is a type of bank credit issued in favour of a person

who is about to make a journev abroad. It is established

Page 55: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

'fb

upon the correBpondent of the bank which issues the

credit. The correBpondBnt honours all those cheques drawn

on this by its holder upto the amount which the

Traveller's L/C is issued. Traveller's L/C as

distinguished from Traveller's cheques, enable their

holder to drat-* draft upon the L/C, for any amount within

the specified amount of the L/C. In case of Traveller's

cheque, t^is holder can only draw upon the amount within

the amount of the cheque. Another advantage of the

Traveller's L/C is that the holder is to carry only one

paper whereas in case of traveller's cheques, he has to

carry several cheques depending upon the amount.

X. Etill of Exchange :

A bill of exchange is an order in writing, requesting the

drawee to pay a specified sum of money at a specified

datEJ. It drawn on a buyer will grant the e;:porter some

protection aigainst the former's not paying, ffrovided it is

linked with documents of title of the goods. It is also a

legal document which allows time to take legal action in

the event of the buyer promising to pay but then

defaulting. Thrt-e p.vrties are xt.vtjlved 3 n the fcrarisaction

of bill of e;;change.

i. The Drawer i.e. the person drawing the bill,

ii. The Drawee i.e. the person on vjhom the bill is drawn,

iii. The Payee i.p. the person to whom payment is made.

The payee will usually be the exporter as the

supplier of the goods.

The E'ill of E-- ;rhange, also Known as draft, can be Sight

Drafts or a Usance Draft. In case of Sxght Draft, the

drSiVtBr instructs the bank to hand over the rele-zant

Page 56: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

^b

duCLUtientB to the importer only against payment. This is

known as D/P or Documents against Payment. It as also

known as Cash against Docudients, In case of Usance Draft,

thE- docLiHients as-e lu ride-d over to the customer against his

acceptance obtained on the bill b/ the bank. The

"acceptance" implies that he agrees to pay on the due

date. This as known as D/A or Documents against

Acceptance. D/d terms apply for shi poients b/ sea through

the Bill of Lading cts a document of title since Air Way

bill, Air Consignment Notes, etc. are not considered as

Documents of Title.

>:i. Open Account :

The method of open account payment does not tie delivery

of goods to payment. As such, goods and documents ars

dipatched directly to the buyer. The accounts are settled

periodically through the usual channels may be by bank

draft/dheqties. Howei/er, in the e-/ent of default by the

buye?r, there is no bill of exchange on which proof of debt

may be pstablishcd. Open Account transactions are limited

to cases where ;

i. There is anter-company relationship between exporter

and ir<pDrter ,

ii. There have been long and favourable dealings between

the parties,

iii., There arB no exchange restrictions, otherwise

accounts have to be settled within permissible time

limit under foreign exchange legulations,

iv. Exporters have sufficient financial strength to hold

in vc-n Lory abroad.

Page 57: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

47

>!ii. Consignment Stock Payment :

Basicall/, the shipment on conBignment as made to the

importer with the condition that payment will not be

required till Lhp yuods are &Dld. The B,-;porter does not

lose titlF- to h3 5 gDDd'3 though he has no protection

against importer't default because of non-existence of

bill of e,;ctiange. The consignee ma/ return the goods at

any time V'jithout any liability. There may also be

poiitic^il, BAcifcingp and climate rlB^5. Foreign e>:cbi^nge

regulations are the other limitations. Only goods to be

sold at foreigf) auction centres those are shipped on

consignment basis from India. Under this system of

payment, the goods remain the property of the e^iporter,

but he may settle with the buyer as to when and at what

price he is to pay for them,

xiii. Barter System :

A barter transactions involve e;:change of goods and not

payment m a monetary unit- At the same time, the price

of the goods is settled m a monetary unit but paid for

through a conrmodity against a commodity. These are very

limited barter transactions during these days. And there

are -jery few countries with which India may have barter

transactions. The? e.-ichange of commodities against

commodities under t le barter system is at the state level

and individual li^iporter/impor tor is not involved directly

therein.

Page 58: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

48

( i i ) Q u a l i t y Cpntrol & Pre-Shipm&nt InsDectaon;

a ) Q u a l i t y Control ;

The need for q u a l i t y c o n t r o l on manu'^'cicturing of p r o d u c t s

r e q u i r e d foi- e . ipor t h a r d l y r e q u i r c i : r-^\-/ fenlp^!a5l5. Q u e l x t y

of t h e proriuci s IL. rntP uf the- iri( lot '^ for ppnc - t r a f ion .irrd

£u& tenanci-' x'~. i»cfSt>L'=^ wfipre cumpfcl >.t lo ' j i 5 o f f e r e d n o t

Ditly by product"- ()•• t he c o u n t r y ro r ice rned but of man/

c o u n t r i e s im lutj inu hiiyhly •^oplub t i c att-d cind d e / e l o p e d

f^conomiFE: . Band's uf i n f f - r i o r n i i r l i t / b e s i d e c s p o i l i n g

t h e ^ r zji'/n -.dTf-et , b r i n g s bad nairiB t o oth-er p r o d u c t s a s

we l l d i s t o r t i n g t hp image of t h e c o u n t r y a s a wViole. In

Crise t h e f o r e i g n buyer 15 n o t i n t e r e s t e d m g e t t i n g t h e

cons ignmen t mspfcctc^d by ariy Indiar i anEspe-ction a g e n c y , the

Govl , would d i s p e n s e w i t h compuiBory p r e - s h i p m e n t

irit.pec t i u n .

GovE'roment Regulations :

Krai ismg tht- importance of the need for supplying goods

stractly according to international standards and

specif icatinn-., the r^cheme of compulbory quality control

and pre- shipment inspection has been instituted under the

E>ipDrt (Dur-\lit/ Control and Inspection) Act, 1963 and

various other rEyulations. It was amended m July,1994 in

order to provide the power to search and seize commodities

against defaulting manufacturers and exporters,

cancellation of the certificate of inspection issued by

the Inspection Agencies. It is an obligatory for an

piporter to fulfill dll conditions relating to quality

control and inspection laid down by the concerned

organisation'-' (Annt^ ure B) , Before conimencmg production

of e>:pDrt goods, the exporters should mai-e themselves

Page 59: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

49

awari? of the requarBinents under these regulations.

To meet the mcroasjing demand for prompt, efficient and

accurate testing of engineering products, the EIC has set

up a P-iIc-t Tecl Huui.e (P7H) at Bomba/. The F*TH consists

of different sectional laborataries covering a

comprehensave range of testing mechanical and electrical

enginperinq prnriurl'-. including mnlnrial anlysjts. A

Quality Dev'el&pment Centre (QD3) has been set up by the

EIC at Madras. The technical personnel froni industry,

engaged an quality control departments, are also given

training for maintenance of quality of products at various

stages of manufacturing, maintenance and use of

statistical data for evaluation and improvement of

qua!ity.

ISD-9BB0:

ISD:9000 is a series of international standards for

quality sysle/iis. These standards have been adopted in

about 90 countries. The equivalent Indian, Britsh and

European Startdards are —

Indian IS : 14000

British BS ; 5750

European EN s 29000

The three Dy??tciTi5 of certificatiDfi introduced by the

Export Inspection Council have close pro.iimity to 150:9300

as foJlows;

i. CDnsiqnmenli-jise Inspection ISO : 9003

ii. Inprocess Our.lity Control (IPDC) ISO : 9002

ail. Self-Certifictaon Scheme ISO : 9001

Eiuyt?r'5 Agency ;

Quite often the foreign buyers laydown their own standards

Page 60: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

and specifactions whxch ma/ or may not be xn consonance

With thp Indian standards including the Btaputations under

ttft Duality CuuLrol Regulations. Similarly, the o-zei" seas

buyers may nofninate their own persons to supervise the

production of goods and to carry out mspectjon before

shipment. These issues need to be got clarified before

the con firmatiori of order to mariufacture the goods

according to foreign buyer's requirements.

b)Pre-Shipment Inspection of items other than Textiles :

The methods and standards of pre-shipment inspection vary

froni product to product as laid down under differnt

Drganisations. Therefore, exporters should contact the

concerned inspection cigency (Anne-;ure 9) to avoid the

delay and other problem at the time of shipment. There

are followirig exeiiiptions of these products :

i. Export House -Trading H D U B B S and Star Trading Houses

recuynisr-d by the central govt, are exempted from the

purview of conipulsory pre-shipment of the engineering

products for being eA-poted by them vide MOC Notification

dated on 6.iB.9P. They have also been exempted of their

own manufacture of footwear and footwear companies,

ii. Approved 100"/. EOUs and EPZ Units are also exempted

from t le purview uf compulsory preshipment inspection

system.

iii. If overseas buyers ars not interested m subjecting

the consignments to pf e shipment irispection by any Indian

inspection agericy, the Govt. would dispense with

CDnj, <ulsDry pre-shipfnent inspection.

Page 61: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

51

(iii) Export Shipping Documents?

Any export shipment involves a number of documents

required mainly by the CuBtoms/Port authorities. Where

the format of thec,e documents is common in most of the

cases, it may differ as well in respect of documents used

at different ports. Hence, a reference to the clearing

and Forwarding Agent and the Customs/Ports authorities is

suggested. According to the Customs Act (section 40), the

person incharge of a conveyance-vessel, vehicle, aircraft,

etc. cannot permit loading of export cargo at the customs

station unless and until formal permission to export given

by proper customs officer, is presented. Before, granting

the permission, the customs officer ensures that the goods

being exported are^ in accordance with the different

regulations, which are in following terms under the leasX

provisions :

i. The goods of the same type, sort and value as have been

declared by the e;;porter,

ii. The duty or cess livable thereon has been properly

determined and paid,

iii. Provisions of E;;port (Control) Order, Export (Quality-

Control S< Inspection) Act and Foreign Exchange

(Regulation) Act c^n? compiled with.

The Customs Act (Section 50) further provides that the

exporter of any goods has to make entry thereof b-/

presenting to the proper officer. In case of goods to be

exported sn a vessel or aircraft, Shipping Bill and other

connected docunients. Therefore. any export shipment

involves the preparation of several documents,

declare;tioris and certificates on the basis of which the

Page 62: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

52

Cu5tcm5 AuthoritaeB grant nece-ssary pcrmiBSion. There are

also several doi uinentE, requxred for submisBion to the Port

AuthDrities. In addition, a few docuroentB are required if

export products fail within the purview of e>:pDrt

asBiBtancL' schemps and facilitje-b. Since a deeper

know] edge about tlitse docuinentfa is a prerequisite for

quicl't r clearance nf goods at tl)e Customs and Port

Officers. The jn.portant shipping documents are explained

as follows :

1. Shipping Bill/Bill pf Export :

The shipping Bill is used to seek permission of the

customs to export by sea/air while the Bill of Export is a

document used for e),port b/ land. Distinction ma/ also

made for the purpose of levying export duty on the basis

of 'market vdilue' or 'tnriff value . This as the main

document required by the Customs authorities for allowing

shipment. It contdxnB description of export goods arid

other particulars like number and description of packages,

marks and numboi t>, quality and value as defined m the Sea

Customs Act, Indian or foreign merchandise, name of the

vessel m wfiictt goc<dE are to be shipped, master or agent,

country of destination, etc.

BasiCrtlly, LJicrc are two types of Sfiipping Bill/Bill of

E iport as discussed below :

a. Free Shipping Bill/BE :

It IS used for goods which neither attract any duty nor

entitled Lo duty drawback on their exportation.

b. Dutiable Shipping Bill :

It xs use m case of goods subject to export duty but may

or iv<ay not be entitled to duty drawback. Primarily, it is

Page 63: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

5:

of two typf^B i.e. for use in case of goods in respect of

which export duty levied on the basis of their (1) market

price and (2) tarjff assessed value. It is usually printed

on yellow paper for use in case of all goods except mica

and jute,

ii• Bill pf Transhipment :

It is a document to be used for goods imported into a

customs port/air port intended for transhipment. It

should be distinguished from Transhipment Permit.

iii- Transhipment Permit :

It is to seek permission for transhipment of goods from

the vessel on which the same are booked originally to

another for e.>:pDrt.

iv. Shipping Order :

It is a document issued by the Shipping Line intimating

the shipper about the reservation of space for shipment of

cargo througli a particular vessel from a specified port

and on a specified date.

V. Cart/Lorry Ticket or Chit i

It is prepared for admittance of cargo through the port

gate. It is also known as vehicle Ticket or Gate Pass.

it includes details of export cargo, the shipper's name,

cart or lorry nuniber, gate number, marks on packages,

quantity' and description.

vi. Dock ChalIan/Export Appliction :

While Dock Chalian is used at Calcutta Port , Export

Application is required at Cochin, Bombay and hetdras Port

for payment of port charges. Tfie format of Export

Appl icn tion ii'td A1 rorltin and lirulrtin port is, however,

different from th,?t of the Bombay Port.

Page 64: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

54

vii. Export Cargo Ticket :

It givBB details likes name of the vessel. Export

Application K'umber, Transit Shed Number, Shipper's name,

Slfippjng Bill Ntjmbr?r and Date and description of Cargo.

It is only used at Coch-in Port,

viii. Shipper's Declaration Form i

It is a declaration by the shippers regarding the value,

sort, specification, quantity and description of goods

being exported. This declaration is usually printed in

the body of the Shipping E^ill.

^x• Packing List :

It is consolidated statement of contents for a number of

cases or packs.

X. Invoice :

An invoice is a basic and complete document containing

information about the shipper, importer, product, price,

origin etc. It is of several types the main being a

comiT-iercial invoice.

>!i- Foreign Exchange Forms ;

TheEie are most important forms required to be filled in by

oxpiiT Lers for all shipments, unless otherwise exempted, to

countries other than Bhutan and Nepal. These forms are of

four types vjhich are in common use at present, namely,

GR/PP, VP/COD and SOFTEX form for export of computer

software obtainable from the RBI or a bank authorised to

deal in foreigri exchange.

Xii . Mate Receipt ;

It is a receipt issued by the Haster of the Vessel after

the cargo is lDadi:-d on the ship. It contains information

on name of vensel, berth,date of shipment, description of

Page 65: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

55

packages, marks and numbers, conditioiT of cargo at the

time Df it£ receipt on board the vessel.

xiii- Bill Df Lading/Air t^aybill/Sea VJaybill :

IL ;L5 the niost important document of title of the goods

shipped, a receipt for the goods shipped and an admission

to their apparent condition and quantity at the time of

shipment and evidence of contract of affreightment. It is

transferable by endorsement and delivery. Its possesBion

is equivalent tc the possession of goods,

>!iv. Combined Transport Document :

CTD is it docuiTip-nt Tor mul ti-modal movement of goods in

containers i.e. movEment by more than one mode, e.g., rail

and ship. The FEDAI (Foreign Exchange Dealers Association

of India) has brought out brochure No, 081 and 082 to

facilitate e ipor t of goods in containers from specified

inland centres in India.

>!V. Post Parcel Receipt :

The PPR is issued by the Post Offices in India in respect

of e\por I pai'Lclc, <.jL'n L by post- IL irs lacrely a jT-ceJpt of

goods £ind not a docufnent of litle to goods. The addressee

may take delivt)'•/ of Lhe parcel dt^^patch-ed to him, wiltiuut

any specific dr'Cuoff-Ti! , except in c se of VF/COD parcels.

>;vi. Shut-out Advice :

It is a statement of packages shutout by a ship and is

prepared by the stied concerned and sent to the shipper

showing the particulars of packages for arrangement for

disposal.

>!Vii . Short-Shipment Term :

It 15 an applicatiort foriii advising tlie customs authorities

at port about the Short-Shipment of goods and for claiming

Page 66: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

5B

the refund of the dut/ and cess paid on such Bhort-Bhipped

goods.

XVX3.1. Refund of E>:pDrt Duty/Cess Form :

In addition Lo Lf;i-' short-Bhiprnt-nt form, still another

form, "Refund of E>:pDrt Duty/Cess Application Form" is

used. It IS a combined iorm of appication for claiming

e\'ce55- e,;pDrt dut;'/cpb5 or import duty/cess.

>:i>!. Shipping Advice :

A shipping adv'j C G at shipment advicG is used to inform the

D-zerseas customer about the shipment of qoods. It

contains infotmation regarding the invoice nubmer, Bill of

Ladirg/Air Waybxll number and date, name of port and

vessel with date of shipment, description of goods and

quantity etc.

Page 67: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

57

(iv) L^Lbeljyjinj_ Pac.kinq and MakinQ of E>;port Cpnsiqnffientsi

^) Labelling ;

Having producEd the goods and got them in&pected for

export, the «)05t important stage is to put labels on them

and pack in the container/boMes, etc., desired by the

buyers. Necessary marking have to be affixed on the

export packages according to shipping requirements.

Sometimes t/'-ie foreigit buyers insists on tfie attachment of

particular types of labels, price tags etc. specifically

made out by them. The import of such articles may be

allowed without Import Trade Control (ITC) restrictions,

provided the custoijis authorities are satisfied on the

basis of evidence produced to them that the articles are

required for bonafide use in CDrrnection with confirmed

e;;pDrt ordBr.

Suppliers made by foreign buyers of labels, price tage and

like articles, to be attached to the goods against

specific orders placed by them on I?Tdian ejiporters,

provided the customs authorities are satisfied with the

bonafide of the c^tse. This will also cover import of

'hangers' supplied free of charge. While putting the

label on a product, take care to make it of the shape,

BiZB and in colour preferred bv the buyer.

b) Packing:

Under rule IB'3 of the Central E^arise Rules, 19A4, the

eMporters are required to indiizate the manufacturer's name

and place of manufacture on the e;;ci5able goods intended

to be e.>ipDrted. 'riowevsr, sDmetimes, the foreign buyers

insist that the Indaan goods be supplied without marking.

In such cases, the Govt. of India has allowed all

Page 68: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

5e

Collechorr. of Cr-ntral Excise to exercise the powers under

i85 (1) of tlie Dforesaad CE Rules to relay, such markings.

On receipt of applications from the Central E>;ci5B

assesses, the Collectors may allow neutral packing on

goods which are meartt for actual e/.-port out of India.

Packany or bull packaging as sofTie prefers to call it, is

distinguished from packing. It refers to protective

covering used for transportation and shipment of goods.

It is being concerned v-iith the containers in which

products reach the ultimate consumer. Though the subject

of both packing r-ind packaging is clo&nly related, packing

is of prime sigriificance as no product package can be

e>:ported withouh some sort of outer packing. Most of the

exportable products require an outer cDntaine?r of one or

another kirxi. Howpver , well a pfoiJuct 3 5 packaged will

resich its destmalion in indifferent condition which may

result in its undervaluation or rejection. While

standards for suitable packing of several important export

products have been i id down and enforced by the EIC under

the Export (Duality Control and Inspectiori) Act- There are

hardly any such national specifications for packaging.

The selection of type of pack and its material for a

Qivt?n product ic determined by the product itself

depending upon ils physical and pshysico-chemical

properties. Wlnlc m some cases, the importer himself

specifies the types of packing. The Indian Institute of

Packaging (IIP) is especialised institute set up to help

and guide the exporters in the matter of suitable packing

for differnt products for e;:pDrt for different markets.

Therefore, the exporter stiould consult these organisations

Page 69: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

59

before decidang upon the types of packing in case the same

has not been specified by his overseas customer.

Neverthelesc;, an attempt is made here to suggest the types

of pdcks of ma Li_r Sells utili£>ed in general, b/ the Indiziii

e-;porter.

i- Steel Drums :

Theisfc- ar ij y* tit/i al 1 / used to ship liqaids in bulk and arE-

made? of plates of varying gauges depending upon the volume

(weight) of liquid.

Liquid weight (per drum) Thickness of Plates

Upto 5 gallons (25 kgs)

Between 5 to J0 gallons (50 kgs)

20-22 gauge

16-18 gauge

Between ^5 to 50 gallons (225-250 Kgs) S-.10 gauge

ii• Wooden Cases :

The wooden cazs should be shaped like a cube and has the

maximum protective strength. If one side is unduly long,

extra strength needs to be given by using battens i.e.

bands of timber running around the case in two places for

additional support on the large side. To avoid pilferage

metal hoops right up at the edge of the case, going over

the tup of nails of the case, may also be used.

Weight of Content;?- of pack [ Thickness of Wood ',

BetweE>n 50 to 100 lbs (22.5 to 45 Kgs) ; 1/2 inch \

100 to 150 lbs ; 5/8 inch 1

150 to 200 lbs ; 3/4 inch 1

200 to 250 lbs ; 7/8 inch 1

Over 250 lbs I An additional 1/B inch', ; thJicknesB for every! ; additional 50 lbs of; ! weight I

Page 70: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

G<3

iii. Carton Packing_:

It may CDJiBist of,

* of innf r Imang of 25-^0 polyethylene film or water

proof paper

* a 7-ply corrugated carton

* external bands of either steel or non-material

strapping

iv. Fibre or Corrugated Board Boxes :

Most of the advance countries have largely switched ovf^r

to these boxes for packing particularly for shipment of

non-frag.xle goods of which weight should not be more than

20-25 Kgs, These boxes of cartons are easy for a pilferer

to open and thoy do not always stand-up well to stacking.

Horeover, their cost is high and guality cartons may also

not be available.

V. Containerisatipn s

The major deveiopement in export packing and shipping

method is containerisation. It is estimated that about

607, to today's export shipment could be containerised.

Before resorting to this method of packing, one should be

sure that both the port of departure and destination have

facilities to handle big containers. A container is a

large metal bo-: that can be loaded with cargo. There are

various si^&-3, but the most common for shipment by sea are

'20s' and '^BB'. A typical of M B ' is 8 feet wide, 8 1/2

feet hiyl) cir.cl ^« fonl long. It can l-.old about 2,347 cubic

feet or 42,000 pounds of cargo. These can be used for sea

or air freight. However, for air freight, the sizes vary

because of the large variation in the inside dimentions of

aircraft-

Page 71: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

Bl

'*'i- Packing Notes and Packing Lists t

A pack nnU:? refer 5 Lo contents of one Individual pack

while the packing list is a consolidated statement of

contents for a number of cases or packs. The 'notes' and

Mist' help the e^'porter to be sure of the goods he packs

in a case or number of cases and the importer to check the

items that have been sent to him. These are prepared in

the following manner.

1.

2.

3.

4.

5.

6.

7.

by

8,.

9-

l i Z )

11

Goods

(i) Packinq Note

Packing Note No. ;

Date of Packing I

Name and address of Exporter I

Haine and address of importer J

Order No. ',

Date ;

r iignt NO. 1

B/L or Air Waybill No. & Date

Marketing numbers say 1/10 to 10/10 !

. Case No. to which this Note related (say 1/lB) \

. Contents I

Quantity ;Weight/Bro55&Net; Packed by ;Ch€?cked by J

Page 72: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

62

(ii) Packing List

1. Packing List No.

2. Date of Packing

3. Name and address of exporter

4. Name and address of importer

5. Dreder No- and date

h. Invoice No, and date

7- Total number of Cases

8. Marking say 1/10 to 10/10

9. Shipped per S/S or Flight number-

10. B/L or AWB No. and date

11. Item's details

I terns .'Case ;NO.

No. of items in each case

Duality Weight Gross/ Net

Packed by

Checked by

c) Marking :

The proper marking including handling instructions of

packs for export help their quick and safe transportation.

Marking are usually of two types, namely, one relating to

"mark of origin' and secondly being 'shipping mark'. Some

CDuritries require that all the imported products bear

compulsor/ mark of origin, others require one only when

the lack of it would give a false impression of the real

origin of goodtj.

False or misleading marks of origin attract international

action and penalities which ma/ amount of seizure of goods

either in the countries where marks ars given or where the

goods Are shipped. As such, the exporter should consult

his overseas buyer and shipping agents regarding the

Page 73: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

63

marking regulations before the packing the goods for

export.

In Shippang Marks, the proper marking including handling

instructions of packs for export help their quick and safe

transportation. Marking should be neat and legible,

printed or stencilled in letters of adequate size, and

must correspond with those on shipping documents,

particularly Bill of Lading, Consular and Commercial

Invoice and Packing Lists. Instructions on marking issued

by the country of importation must be adhered to. Markings

should be water proof, weather proof, smear proof and

permanent. Black pigment type ink be used. Oil marks be

competely obliterated.

Markings usually include imformation on the following

a5p£?cts which can bt- termed as 'leading' and * subsidiary'

marks.

Leading Harks ;

i. Shipper's (exporter's ) mark

ii. Importer's mark as mentioned in L/C

iii,. Destination

iv. Order No.

V. Destination and Port of entry

Subsidiary Mp>rk5 :

vi. Country of Origin

vii. Port of Shipment and places of despatch

viii. Gross, net, tare and nett nett, weight and cubic

measurement.

ix. Handling instructions conveying special precaution

including symbols thereof.

Page 74: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

CHAPTER - 4

MARKETING CHANNELS OF BRASS HARDWARE AND ARTWARE BUSIHESS:

n ) Dxstribution Channels AbroadsFor successful marketing,

selection of r^ght distribution channel is essential. It

15, however, a LOinplfx task. To find out the distribution

system m each target market, which essentially varies for

industrial or cnnsumnr qoods. Their function is to bridge

the gap beti^een the producer of a product and the user of

it irrespective of ihe fact that parties are located m

the same country or m different countries miles apart.

Accordingly, the tBrmxnal points of a particular channel

15 the consumer at the point of consumption or final

puchase.

The mterprisBB acting in any capacity i,e, as impoterB,

distributors, retailers etc. are called "Intermediaries"

or "Middlemen". Besides buying and selling, the/ may be

engaged m other distribution functions. These function

might be shared by agents and brokers of stock and sell.

For proper selection of a distribution channel, it is

advisable to undertt^ike research in distribution methods

operating jn regard LD the product m a particular market.

It would help in identifying not onl/ the distribution

system but also help the exporter m finding out the

requirement of 'channel' which one chooses.

Market is to be distinguished from a country as the latter

may comprise ^ raimbEr of markets. Different regjons m a

coLtntry have dxfier&rtt msrk&tzrig characteristics dividing

the m iPtD '=evBral markets. But still there is something

common among all the niarkets which though may not convert

them into one single market, but at least put them into

Page 75: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

65

BomB cDhesivE? ^nd limAted number, say four to five or

seven more. For example, a vast country like the USA

CDuld conveniently be divided into 5i;-{ different market

segments, namely :

- N o r t h FaFit - S o u t h Wes t

- Middle West - South East

~ South West - North West

Even a comparatively small country like Germany is stated

to comprise a numhsr of separate markets. Similarly,

North Italy is to be treated separately from its Southern

parts. While the North is highly developed. South Italy

is less developed. While talking about different

marketing segments in the same country, one should not

forget that different countries in the same region like

West Europe have quite distinct marketing characteristics.

Then, a geographical continent as a whole can also be

divided into two or more quite different marketing areas.

The continent of Europe has two completely dissimilar

systems of marketing with central buying/selling system of

East Europe and the usual method followed in West Europe.

Japan has its own different market characteristics. The

developing countries of Asia, Africa or Latin America have

also distinct market segments- The oil rich countries in

the Middle East or elsewhere have their own distinct

characteristics.

Page 76: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

66

CO

hi m

m rr 111 H DC O a. X

CO a: III Q: D t -( r u.

< 3

1

s

w tr. Ul -J

ai

Ul _i O X

<o a: m H oc O a. S

1

5

CO 1 -co 2 : U l

o

z o CO CO 2

O o * <

6

o Q: O

o

> 3 ffl _J < fr H z Ul o 6 ra

6

o z Q: O a. 2

Page 77: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

B7

(II)Major Exports of Brass Builder's Hardware and Artware

from Aliqarh and Moradabad Respect!velyg Most of the

e>:pDrter& of Brass. Builder's hardware and artware fall

into the Bma^i 1 scale sector. They are unorganised with

the manufacturing units spread in a large number of towns

and cities. Majority' of these irjdustries lie in Aligarh

and Moradabad respectively. These cities cater to almost

the whole of Indian Brass Builder's tiardware and artware

e>:pDrt5. Piligarh specialises in the manufacture and

G>:pDrt of Builder's liardware whereas Moradabad specialxes

for Brass artware.

Some of the major e^iporters of Brass Builder's hardware in

the organised sector are as follows;

(1). Allen ?<: Alwan Pvt. Ltd.

Post Soy. riu. 11

A l i g a r h ( U . P . ) .

( 2 ) . KufTiar M e t a l Co.

2-A/tt,^ h,^n',angl) Gate

Aligarh (U.P.).

(3). Sanlika Corporation Pvt. Ltd.

S. S. Mills Compound, Sarai Lawaria

Aligarh (U.P.).

(4), Prabha^ar Industries

Jaiganj

Aligarh (U.P.).

(5), Chandor Brothers

3-7, Industrial Estate

Aljcjarli (LLP.).

Page 78: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

68

(h) . A n a u f f M t ' f a l Wt i r t -^

vJaiGanj

Alig.-,rh (U.P,).

(7). Pri'/a InternatiDnal

Gopalganj, Parahdwari

ftligarh «U.P.>.

(8). Imperial Hetal Works

G.T. Road

A l i g a r h ( U . P . ) -

( 9 ) . Gaurav I n t e r n a t i o n a l

Gu la r Rucxd

Aligarh {U.P.}.

(10,>,Orient Metal Works

19, liasoodabad

Aligarh iii.P.).

Now, some of the major exporter's of Brass artware in the

organised sector of lioradabad, are discussed as fori lows:

1. H&mant Kumar ?< Company

56-Gandhi Nagar

Moradabad (U.P.).

2. Khalid Trading Corporation

Jamuj tiasjid

MDrarjnhad (U.P.).

3. Ahmad Brass Corporation

Gul 3}.cdhet.--d rinrl-eL

Moradabad (ILP.).

4. Prtrariiount Trading Corporation

PoE t Bo . Ho. \57

Ta-yela Street, iloradabad (U.P.)-

Page 79: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

G9

5. Bhatia Overseas E,;port Pvt. Ltd.

Gol Shaheed

Moradabad (U.P.).

6. Lacra Trading Corporation

Cutghar

Muradabcd (U.P.).

7 . D e v a y a n Compariy

K anc h an &(ia l a

B a z i Q c i r a n S t r e e t , Horadetbad ( U . P . )

8 . S a l a r I n t e r n a t i o n a l

L a l b a g h

M o r a d a b a d ( U . P . ) ,

9 . D e c o l i t B r a s s

P a g b a d a , D e l h i Road

M o r a d a b a d ( U . P . ) .

I B . W o r d h i Wcire HCJUSVP

T h t e r a S t r e e t

M o r a d a b a d ( U . P . ) .

Page 80: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

CHAPTER ~ 3

EXP0F^:T FINANCE FOR BRASS BUILDER'S HftRDWARE AND ARTMARE

BUSINESS;

Finance and credit Bre available to help not only export

production but alBO to sell to overseas customers on

credit. There are different schemes like pre-Bhipment or

packing credit, post-shipment credit and finance for

deferred payment e;:port5. The PSCFC scheme makes

available post-shipment credit in foreign currency credit

and finance is the life blood of business whether domestic

or international. More so in case of export transaction

on the account of the emergence and prevalence of

ingenious non-price competitive techniques of encountered

by exporters m various countries to enlarge their share

of world mari-ets. The selling techniques are no longer

confined to mere quality, price or delivery schedules of

the products but extended to payment terms offered by

exporters. Laboral payment terms generally score over the

conipetxtorB of same or similar products, not only of

capital equipment but also of consumers goods.

HDW€;ver, these terms depend upon the availability of

finance to exporters in relation to its quantum, cost and

the period not only at post-shipment stage but also at

pre-shipment stage. They will not be in a position to

book large export orders. Even merchant-exporters require

finance for nbtaminy products from 1 heir Supplit^rs. But

financing of exporters and their in turn offering of

liberal payment terms to overseas buyers involves risks.

The risk could be very serious when credit iEi extended to

Page 81: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

71

parties perBonally Inown and residing in other countries.

There are- coiTimarcial and non-commercial or political risks

attendant on granting credit to foreign buyers. There mBy

be a sudden x;rtpart or e>'.change restriction, and

moratorium. These are risks which are beyond the control

of the exput te-r but their incidence will block has money

abroad, and lie will find himself in difficulties. In such

circumstances, export credit insurance becomes necessary.

This chapter is therefore, devoted to export finance and

credit risk irtsurance facilities available to Indian

e>;porters.

i• Pre-shipment Finance or Packing Credit s

Pre-shipment finance is also known as "Packing Credit",

refers to any loan to an exporter for financing the

purchase, processing, manufacturing or packing of goods as

defined by RBI. It is available to all types of

exporters. The types of credit, discussed below, in the

pre-shipment finance depends on the nature of production

and procurement system concerning the commodity to be

exported.

a) Extended Packing Credit Loan

b) Packing Credit Loan (Hypothecation)

c) Packing Credit Loan (Pledge)

d) Eiecured Shipping Loan

The Extended Packing Credit Loan is granted to the clients

for making advance payement to the suppliers for acquiring

goods to be exported. Thus, it is clean in nature and

usually extended to the parties, who sre rated as first

class, for a very short duration. However, bank should

assess the procurenient period and once the goods are

Page 82: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

72

acquired flnri are 3 fi \Ytc custody of the exporter client,

convert the clc-nn advance into PCL hypothecation/pledge

or secured nhippinq loan depeiidintj on the nature of

cofjimodity. Pad j.ny Credit Hypotliecation Loan 15 extednded

where ravi materials, work-in-process and finished goods

meant for e>:port sre available as security. The

processing or manufacturing may be undertaken by the

e^'.porter himself or through Bub-contractors captive units.

The PLC (Pledge) can be granted as loan in form of pledge

in cases where e>!pDrter are required to collect the raw

materials in odd or bunched lots or the raw matterials in

seasonal in nature and the actual exports take place in

due course in installments as per the shipping schedules

agreed upon by the overseas buyers. Whereas, in case of

secured Shipping Loan, once the goods are ready for

shipment and e>;porters has handed over the goods to the

transport operator <r forwarding agent for despatch the

shipment, the advance can be granted as Secured Shipping

Loan. Than xs normally sanctioned for short period

concidering the time taken for despatch of goods to port

towns and compelition of shipping and custom formalities.

Here, the bank ensure that the goods are handled by

approved transport operators.

ii- Post-Shipment Finance i

Post-shipment finance meeins any loan or any other credit

provided by any institution to an exporter of goods from

India from date of extending the credit after shipment of

goods to the date of realisation of export proceeds, and

includes any loa?~> or advance granted to an exporter, on

consideration of or on the security of any drawback or any

Page 83: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

7:

cash receivable by way of incentives from the Government.

Thfc-refore. post-shipment finance can be classified into

following categorips:

a) negctiation/pc-^/ment/acceptance of export documents

under Letter of Credit,

b) purchase/d2'jC-Qun i of export documents under confirmed

orders and export contacts,

c) advances again<5t bills sent on collection basis,

ri) advances ayaintft e>!pDrt5 on consignment basis,

B ) ad-/cincGs ciga3nst undravan balances,

f) ad-/'ancp£> against cash incentives,

g) advarices against duty drawback entitlement,

h) advances against retention money,

i) fmancinq i^ iporti:, under Deferred Payment Arrangements,

turnkey projects, construction contracts, etc.

While granting post-shipment finance,banks are governed b/

the guidlmes issued by the RBI under the Export Credit

(Interest subsidiary) Scheme, 1968, the Rules of the

Fort-ign Eschange Dediers Association of India (FEDAI), the

Eriport Trade Control and Exchange Control Regulations and

the iriLc-rna tiuricil conventions and codes of the

International Chamber of Commerce. The e>:porter5 wishing

to obtain post-shipment finance are required to apply for

and obtain sanction of limits suitable and according to

their needs. At the pre-sales stage, bifurcation of

working capital limits for domestic and e.- sport purposes,

IS essential so thai the quantum of packing credit ad-zance

could be determined. At the post-sales stage', quantum of

post-shippjng facilities would be based on e>;port sales

and B,:p>Drt receivables.

Page 84: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

74

PoBl-Bhipmsnh finance is granted under various mBthods.

Hu^nce, tde f >:por Ler may clioDse the? Lypf? of facilily which

ic most 5tu table to his needs- However, whatever be the

typt^ of fiiujlity yr anted, banks would scrutinise the

documents submitted for compliance of e>:change control

provi5ioriir> like

a) the documents are drawn m permitted currericxe'^ and

payrrient receivable as permitted method pa/ment,

b) the relevant GR/PP from duly certified by the customs

15 submitted and particulars as stated m tfie GR/PP

from are consistent with the documents tendered as

well as the sale contact order, etc.

c) the documents are submitted withm the time limit

stipulated and m case of delay suitable eA'planation

15 made,

d) the period of usance is m consonance with the time

limit prescribed for realisation of export proceeds.

For availing themselves of the post-shipiment finance

facilities, the ejjporters arn^ to follow the under-

mentioned procedure.

a) They should enclose the documents with covering letter

indicating the t/pe of facility required i.e. negotiation,

purchasF^ or discount etc., The proceeds to be credited to

current/pactirig credit account be used for the

transaction, instructions regarding collection charges

against payment/acceptance, etc-

b) DDcnmcnts should be correctly drawn and

aut henticattd.

c) DbLam a '-.elArr's curitmgency policy m case of

c.^' f./f.D.b. contacts,

Page 85: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

75

iii - PP5J rL5ll3J3JIient Export Credit Penomin^ted in Foreign

Currency Scheme (PSCFC Scheme) r

With a v'lew to enabling e^iporters to have poBt-shipment

credit donorairiated in foreign currenr-y arid pay interest at

rates appliCcrtbie lo the foreign currency concerned, the

PSCFC scheiT/P hcf5 uGBn introduced with effect from Januar/

1, 1992, Under this scheme, there as no grant of foreign

currency loan Lo the exporter. His credit liability will

be denominated m foreign currency and it is to be

liquiddted by export proceeds m foreign currency. The

exporter may continue to obtain post-shipment export

credat under the e,\i5ting schemes m rupees or avail of

the post-shipment export credit under the PSCFC Schemes.

The foreign currency post-shipment credit will be

denominated js US dollars. The export bills, if drawn m

other permitted currencies, will first be converted in US

doliars at appropriate exchange rates. In case export

bills are drawn m convertible rupees, the post-shipment

credit would continue to be denominated m Indian rupees.

The post-shipment credit m respect of exports to

bilateral account countries and ACU countries will not be

covered under the PSCFC Schemes.

The ratr of antorpst on US dollars denominated post-

shipment export credit will be fixed by the RBI from time

to time. In respnct of rupees advance receivable m

Indian rupees from Government e.g. IPRS (International

Price Reimbursement Scheme), the rates as notified from

time to time will apply- The interest amount at the rate

applicable \c< US dollars m which the post-shipment credit

IB denominatti'd. will be deducted from the total amount of

Page 86: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

7B

the bill. The ev^porter will accordingly be paid the rupee

equivalent oi the net foreign currency amount of the bill,

iv. Deferred Payment Terms and Project Exports pr Medium

and Long Term Credit ;

The packing credit ot pre-shipment finance and also post-

shipment finance (Jt Lotiled earlier ih, given for a ma)<imum

period of 183 days. However, there ^re cases when goods

sre e>;pDrted on terms of credit which e.iCGeci the period

laid down b/ the PBI i.e., 189 days for the realization of

export proceeds. Such e,' ;port5 ars known as "Deferred

Pa/ment Terms", The credit e>:tended for financing such

defe-rred payment e>:pDrt5 is known as Medium and Long Term

Credit. Credit beyond 6 months and less than 5 years is

referred to as "medium term", and beyond 5 years, as "long

term". Thpse type-^ of credits are required for financing

B,-!pDrts of capital goods and equipment and turnkey

projects involving long tBrm payments which sirB usually

deferred over a period of time. The usual terms for

deferred pcsyment e.ports are the relative contracts which

normally provide for payment of a certain portion of the

relative invoictb^ value as advance or dovin payment, the

balance being p..-iyable XTI installments spread over a period

of time.

The financing of deferred payment term exports and project

is under taken by several institutions- As such, various

aspects of such contracts require approval of several

institution m India such as RBI, ECGC as well as

concBrnBd hanks. The exporters bank or the EZXIM Bank can

individually finance such exports under the power

delegated to them. There is virtually a " Three-tier

Page 87: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

77

System " for firmncxng of deferred payment exports, Bf

discussed belovi :

a) Cc'/nmercial banhs who are authorased dealers m

foreign e>;chcingB m India, can provide m principle

clearance for contracts values upto Rs. 5 crores.

b) LXIhl BriuK is empowered to yive clearance for

contracts of -/alue of Rs. 30 crores.

c) Working Group considers proposals of contracts

beyond Rs. 30 crores.

V. Foreign Currency Loans/Credits ?

Foreign currency loans or credits may be raised in the

form of supplier's credit & buyer's credit. These are

categorised into a) short term loans m foreign currency

and b) foreign currency loans by e,~:port-Driented unit,

a) Period permission of RBI is required to raise these

loans from abroad for a period not e,»;ceeding one year.

Apply to RBl'E Central Office (CALO Section), Central

Office Building, Bombay 400023 m form m FCL 4 m

duplicate ttirough an Authorised Dealer (Bank). The

concerned ban}' will scrutinise if from the angle of import

m accordance with current import policy and if m order,

forward it Lo the P.BI. Therefore, thp RSI will issue a

letter of approval In t))B applicant indicating the terms

and conditions, vi;:;

I. amour^L of lorin/i rpdit

II. rate of interest

III. period of repayment

Applications for repayment of loc n or interest should be

made to the concerripd regional office of RBI as provided

m ;U.iD of the RBI "rianual"

Page 88: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

7B

b) Foreign Currency loans from banks, international

financial institutions, foreign/MRI equity holders,

collaborators, buyer 5 or other foreign/NRI individuals and

corporate rnti I ICL:, abroad, can be raised freely by all

projects hav-iny e,:pDrt capability including 1007- export-

oriented unitB and units located in Export ProcesBing

Zones. Such loaris can be raised for e>:pansion and

moderniBahion of the existing units for enhancing their

e,-:pDrt capttitai lity. The FC loan vdll be permitted to be

utilised for financing cost of import of CG, raw materials

and components^ Bnd for technology payments as per the

prevalent import policy and /or for financing local rupee

cost of the project.

The loan should be for a minimum maturity period of two

years will sx-: monthly repayments. It should be the prime

rate in force in the currency of the loan or 6 months

floating rate plus a reasonable spread whichever is

higher- To get the foreign currency loans, one may apply

in the form FCIA to the concerned regional office of the

RBI, through an Authorised Dealer through whom the

borrower propOi^es to make remittances on account of

repayment of loan and payment of interest. If found in

order, tiio RBI will issue the Letter of Approval for

raising loanL" ori the conditions indicated therein-

Applications for remittances under ttie loan may be may to

the AD in for A2 accompanied by a certificate from a

Chartered Accountant in form FCL 5.

Page 89: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

CHAPTER - 6

EXPORT ASSISTANCE AND FACILITIES TO BRASS BUILDER'S

EXPORTERS5

Export assiBtance and facilities are granted both for

production and marketing. A number of instatutionB at

central and state level have been set up to outline and

execute productior* and marketing programmes of the

industry and trade- These facilities are granted right

at the stage of planning and execution of production for

e;;port& and (TiarKeting thereof abroad. Production

facilitxeE, avG given both at the pre-shipment and post-

shipment stages. Similarly, facilities for marketing

are available at different levels. Nevertheless, there

arB a few types of assistance and facilities which

though might have been referred to require special

treatment.

i- Registration Procedure i

The EXIM Policy lays down the condition for obtaining a

Registration-cum-Membership Certificate Number for

getting a iiecence or other benefits under the policy.

Such RMCM will be given after the exporter or importer

has been admitted to the membership of a EPC etc.

Hence, membership i-. a pre-requirement to obtain a RMCM.

There are two types of registrations, namely :

a. Manufacturer - Exporter, and

b. Merchant - Exporter.

In terms of EXIM policy, an exporter/importer may apply

to become a member of an EPC or FIEO. However, if the

exporter product is such that it is not covered hy any

EPC, the RMCM will be issued by the regional licencing

Page 90: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

GO

a u l h o r x t y (.oiu i r i >Dd . H e n c e , t h e r e .\rr> t h r e e r e g i B t e r l n g

a u t h o r i t i e H f o r j s e u i n g RMCM. T h e s e are a s f o l l o w s :

a . rtiiy EPC f r f x i i 1 hf-> l o t a l o f 19 c?>:ir=,tinQ a t p r e s e n t , r»B

l i s t e d a t ( A n n e - j u r e 1 0 ) f o r a l l e,! p o r t e r s e > : c e p t

E H / S T H / T H .

b. FIED - Federation of Indian Export Organisation in

case of EA'port Houses, TH and STH (see Annexure 10).

c. an/ regional licencing authority having juridiction

over the applicant as listed at Annexure 11, for e>:pDrtB

not covered by any of the EPC.

ii. Import Facilities :

Export Houses/Trading Houses/Star Trading Houses ar^

granted following facilities under the import policy.

a. Special import licences for such value or bearing

such proportionn to NFE {Not Foreign E>:change) earned

during the various licencing year, for the import of

such items included in the Negative List of Imports as

may be specified under a scheme to be noticed in this

behalf.

b. Advance (Duty Exemption ) Licences under the scheme

of self-certification and self-declaration.

c. LUT facilties (Actual User Conditions),

iii- Foreign Exchange Facilities x

With the introduction of partial convertibility of

Indian rupee, foreign exchange is available at official

rate and market rate. The former is lower than the

latter and FE at the official rate is released for very

limited purposes including some specified imports-

However, FE at the official rate will be available in

respect of import's- aginst Additional Licences or REP

Page 91: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

Bl

LicFnces anri FXIM Scrips issued tn Export/Tradmg/Star

Trading House-r. under the previous 1990-93 IMf^EX Policy

but which remained unutilised as on 29 ' Feb, 1992 for

the rBmaming period of their maturity.

iv. Assistance to training of personnel and trade

delegations :

Preference n;a/ be given to personnel of EH/1H/STH by

selection of participants ior training programmeB

organised m India and abroad b/ specified institutions

and organisations, where such participation is sponsored

by the Govt, of India. This is to ensure that personnel

of such EH/TH are m continuous touch with and possess

knowledge of latest and sophisticated marketing

techniques. Apart from this, a number of trade

delegations are sent abroad by the Govt, of India, FIEO

and EPC for DKpoitmg foreign markets and exchange of

information to develop trade- Representatives of

EH/TH/STH ma/ be given preference for being included in

these delegations.

v. F-acility to Export Excisable Goods s

Registered E>:pDrter5 including EH need furnish any bank

guarantees/securities for the export bonds required to

be furnished by them under Rule 13/14 of the CE Rules,

1944- They arB also not required to furnish bank

guarantee/security for bond to be executed under CE Rule

191E<. However , otJ ier classes of exporters are to

deposit 25"{ of thie bond amount as guarantee/security.

VI. Machinery and Eguipment Facilities s

Machinery and equipment both indigenous and imported arc

madc^ available through various organisations like WISC

Page 92: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

82

for SSI Unjt'^ .-.nd by way of allowing them at

CDriC€_-55iDnctl :2fnpD.' l duty and arrungang finance under

special "srhpnit -B, far pffacaent and fronomic e,;port

prDduction, JYief e 35 no item of Capital Goods (CG) m

thp Megativt Last of importB. Hence, no licence is

required to import any friachinery or equipment where no

concession in import dut/ is required. To facilitate

and fSssist e^'port production, facilities for procurement

of niachmery' and equipment, djes, jigs, tools etc. sire

given under various schemes. These schemes, interalia

are included thrir arrangement on hire-purchase through

M3IC with special allotment of foreign exchange and

arrangement fmanct' on concessional rate and lower

import duty etc. The following schemes under NSIC

e>:plained these if-icilities :

£1. EPCG (Eiport Promotion Capital Goods) Scheme

b. TDF <Terhnical Development Fund) Scheme

c. Finance .' Credit

vii. Facilities for Technical Upgadatipn Policy t

In terms of new industrial policy, automatic permission

will be gjven for foreign technology agreements m high

priority industries including Software industry upto a

lumpsum payment of Rs, One crore, 5X royalty for

domestic sales and Q'/. for exportB, subject to total

payments of 8"i of sales over a period of 10 years from

the date of agreement or 7 years from commencement of

production. The prescribed royalty rates are net of

ta^'Es nnd will be calculated according to standard

prDcedureE>.

Page 93: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

B:

V i i i. Facxlitaes for Foreign CD I laboration or .Tnvestment

ArcnrrhiKj fn 1 hr <>S ritpmrnt nn Indimtrinl Poljcy,

appro-/al5 wall br- ga vpn for in\/estn)ent upto 51.7. foreign

equity j.n high priorxty industries, These approvals

Will be avaiir-ble if the foreign equity covers t ie

foreign r'):change rr-quir ement for import of capital

goods. The import of components, raw materials and

intermediate guod-: * and paynient of friow-how fees and

royaJties wili be governed by the general policy

applicable to ottipt domestic units. Pa/merit of

dividents will be monitored through the RBI. So as to

ensure that outflows on account of dividend payments are

balanced b/ export earnings over a period of time.

Other foreign equity proposals including proposalE

involving 51% equity but which do not meet any or all of

the criterian mentioned above, will continue to require

clearance. Majority foreign equity holding upto 517.

Will also be allowed for trading companies primarily

engaged m export activities.

ix- F aw Materials Assistance :

In the scheme of e,-:pDrt production facilities, raw

inatBrialB astjisttince is most important, E>:port-oriented

units, i.e. units e^'porting as laid down in particular

policy, get special import licences and facilities. Raw

materials both imported arid iridigenous Eire made

available to units manufacturing goods for exports,

whether exports are effected such units theniselves or

through otheh e,;porters etc. This assistance is given

tor prodiiction of export products both and before

Page 94: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

84

effecting e>;portfc x.e. m advance as well as after

Bhiprrient of goDds.

•"'- Marketing Development Assistance t

MDA i5 to a iargp extent available to export promotion

agencies and nnt that much to individual exporters.

However, EH/TH are entitled to several types of

asBi&tancG under this scheme. In addition to the

incentives and assistance granted to promote exports of

a single or group of items, this assistance is given

for an overall development of overseas markets. It

inclLides income ta>; rebate and the grants given under

the MDA Scheme of the Ministry of Commerce. MDA is an

mter-alia available for sponsoring trade delegations

abroad and m the country to stud/ the markets,

publicity, setting up of warehouses, research 8t

developments, and quality control etc. Though

available to an individual or organisation engaged m

e 'iport marketing, it is of more significance to the

latter. II a <- granted under the Code of Grants-m-Aid

promulgated by the Ministry of Commerce m August, 1965.

Since then, the form of assistance granted there under

has been modified several times.

>*i- Income Tax facilties to Exporters, t

There is a total exemption from income tax of export

profits. Relief from tax is also available to other

foreign e>;change eaners. Therefore, to promote exports,

tax incentives are granted under the Income Tax Act.

Broadly, these incentives provide for :

a. deduction of whole of the profits derived from export

of specified good^ or merchandise of exporters and the

Page 95: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

B5

supporting (naiut facturer' B of EH/TH,

b. deduction of the specified amount of profits of

companif-s t=ngaged \n thp business of the hotel or of a

tour operator or a travel agent,

c. ta>: relief on export of Computer Software and for

1mpor t of syB tern.

d» ta>; relief to an Indian conipany or resident ta>! payer

by giving a deduction of 50X oi the profits irom project

e':pDrts m computing the ta;;able income.

e. five year tax holidays to units m Free Trade Zones

and E/iport Processing Zones,

f. five year ta>: holida/ to 1007. e>;port~oriented units,

g. ta;-: exemption of plantation subsidy,

h. relief from ta.'i of dividends on shares and royalties

from certain foreign enterprises,

1. ta>: relief to playwrights, artise, sportsmen etc.,

J. tax relief on remuneration received from abroad by

teachers and professors etcj

Xii - Drawback of Customs and Central E>{cise Duty J

Among the ve^rious kinds of export assistance, drawback

of customs and c€?ntral excise duty paid on rav)

materials, components and spares, imported or

indigenous, used m e,-;pDrt products is the most

important. It is given both to the manufacturer-

ejiporters or merchant-exporters and Export/Trading

Houses. It 15 of two kinds i.e. All Industry (AI)

Rates and Brand Rates or Special Brand Rates. The

scheme of Dravjback on manufactured products is presently

contained and administered in accordance with the

^Cu'.toms and Cr-riLi.il Excise Duty Druwback Rules ,1777 to

Page 96: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

B6

be hnreaftDr rcfBrrpii to as Rules, and the notifications

issued thereunder,from time to time-

Accijrri.iny to thp Sc?ction 2 (a) ni thpse Ru]lt?5,

'drawback' in relation to any goods manufactured in

India and D;:p/ort(?d means :

a. the rebate of duty of chargeable on any imported

materials or ejscisable materials used in the manufacture

of such goods in India,

b. the rebate of duty of excise chargeable under the

Central Excise and Salt Act, 1944, on the goods

specified in the schedule to the Rules.

Section 3 of these Rules further specify th.-st drawback

may be allowed on the export of goods specified in the

schedule at such amount or at such rates, as may be

determined by the Central Government. No drawback is

admissible if duty free materials are used for

manufacturing the products exported.

>!iii. Export Credit Risk or Insurance through ECGCB

There are many risks besides fire, theft and marine

involved in trading with overseas buyers on credit

terms- The risk involved in extending credit in export

transaction is covered by ECGC (Export Credit Guarantee

Corporation of India Ltd). These risks may be

commercial as well as political. The overseas buyers

may not accept exporter's goods or go insolvent or

default in payment. These may be wf«r, revolution or

civil disturbances, restrictions on remittances and

moratoriuni on payment, blocking or delaying of export

proceeds. Even there might be export restrictions in

India affectjng timely supply of goods to overseas

Page 97: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

B7

buyers. The D):port has to bear all these risks while

trading wj tti Di/ei-si&'at> buyer who XB thouBands of miles

awa/ arid of wl)nm hp has at best imperfect knowlpdge.

BesideE bearing these risks, the exporter has to find

finance not only to offer liberal credit terms to his

overseas buyer but also to smoothly carry on his

production schedule.

The ECBC is not a lending institution. It helps

exporters to obtain finance from commercial banks as its

policies and guarantees ar^ an anchor of security to the

exporters to obtaan finance through banking Bystem. It

ensures the exporter's credit risks, commercial and

political, and guarantees payment to the exporter who

can offerd credit with confidence and enlarge his

overseas business with service of security- It also

finds the credit-worthiness of foreign buyer. It

provides a service which is not available from

commercial insurance companies. It charges premium of

its ensurance and guarantees, the rates being kept as

low as possible so that the exporters are in a position

to compete effectively in the overseas markets.

To suit the •^'aryxng pattern of trade, ECGC issues

covers/guarantees which can be broadly divided intoi

a. Standard policies issued to exporters to protect them

against payment risks involved in exports on short term

cr&dti.

b. Specific policies designed to protect Indian firms

against payment risks involved in

i. ex'ports on deferred payment terms

i3. services rDndcred to froeign parties and

Page 98: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

B8

ill. conBlructaon works and turnkey projects undertaken

abroad.

c. F"inanr.ial gn< rr ntf?ps issued to banks against risks

involved in providing credit to exporters at pre—

shipment and post—shipment stages.

d. Special schems viz; Transfer Guarantee issued to

protect banks which add confirmation to Letters Credit,

Insurance Cover for Bu/er's Credti, Lines of Credit,

Overseas Investment Insurance and Exchange Fluctuation

Risk Insurance and Special Facilities for small scale

exporters and exporters of books and publications.

xiv. Financial Guarantees by ECGC ;

The ECGC has designed several Financial Guarantee to

encourage banks to give liberal credit both pre-shipment

for producing, packing and exporting of goods and

finance required after shipment of goods. The

beneficiaries under the Guarantees arB not the banks but

the exporters as weij- Those are as follows!

1. Pricking Credit Guarantee

ii. Export Production Finance Guarantpe

lii. Post-Shipment Export Credit Gurarantee

iv. Export Finance Guarantee

V. Export Performance Indemnity

vi. Export Finance (Overseas lending) Guarantee.

>''^- Foreign Exchange for Exporters;

The foreign Exchange Regime has been liberUsed with the

partial convertibility of rupee in 60 : 40 ratio and

consequent commencement of dual exchange rate. Besides

allowing the exporters to maintain dollar accounts,

there is a genera] liberalisation of remittance of

Page 99: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

89

foreign e;;chanye for visits abroad, agency commission,

e,':port clain.B reduction in export value, reimbursement

of r-';ipr?n'".r"- iiii urri-d on rii slioru ir i d f ;:pnrt bill'^ and

consular fees c?l.c-

Recoqnising thp nned for an intensive sales effort

abroad, the Government of India and various export

promotion Drganis;ation5 have instituted several measures

to help exporters to undertake sustained promotion

compaigns fo advertising, participation in trade fairs 8t

exhibitions, foreign visits, publicity and assistance

etc. These Forejgn Exchange facilities are discussed as

below ;

>!Vi. Liberalised E){chanqe Rate Management System

(LERMS);

The essential feature of this system is that the rupee

has been made convertible for all approved external

transactions. The FE market decides the value of Indian

rupee in place of RBI for as much as 60/C of all inward

remittances on current account both for merchandise and

invisibles- The exchange rate of remaining 4(3Z receipts

will continue to be determined by the RBI. It is known

as official rate as opposed to the market rate. Thus,

exporters of goods and services and those who are in

receipt of remittances are able to sell bulk (60%) of

their foreign exchange at market determined rates which

will be higtier than official rate. Over a period of

time, the eiiporter's earnings on this account may be

more than the premium earned on the REP licences/EXIM

scrips previously obteiined by them. Consequently, those

who need to import goods and services or undertake

Page 100: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

90

travf='] abrortd wj_ 1 J hi^ abie \tj »ni/ FE at market-

determined rates from banks (ADs), subject to the

tran&nct3on=. hr-ing "liyablp under Ijberlised trade and

control regifi.-es. And 15"/. of the receipts m foreign

currency w.i 1 1 bt-' Rllcw^ed to be retained in -foreagn

currency accounts with banJ-s in India, out of the

amount, to be surrendered at free market rates.

The funds m these accounts can be utilised for meeting

current account pa/ments permitted under trade and

eMchEinge control regulations.

As a result of LERM3, RBI has delegated powers to

authorised dealers m FE for release of foreign exchange

for various purposes, without reference to Reserve Bank.

The scope of authority already delegated to ADs to allow

remittances towards agency commission on export such as

e,-;port claiois, expenses on dishonored export bills,

legal e^ipenses, reduction in expert value and certain

other sundry remittances has been inlarged. The need

for submiB^ioii of prescribed forms has been done away,

and the Foreign E/fchange Travel Ta,-; is abolished. Above

all, the FE for foreign travel has been liberalised.

Page 101: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

CHAPTER - 7

PROgyEMS FACED BY INDIAN BRASS BUILDER'S HARDWARE AND

ARTWARE EXPORTERS s

These problems were highlighted by the manufacturers ^ and

exporters of Brass builder's hardwares from Aligarh and

artwares from Moradabad. These manufacturers - cum-

exporters were personally interviewed as a part of this

study and they highlighted a whole range of problems faced

by them, especially the exporting problems.

^• Lack of Communication Facilities ;

Inspite of the fact that 30X of India's exports of Brass

builder's hardware ^ artware BKB going from U.P.,

particularly from fioradabad and Aligarh, these places do

not have efficient communication systems. Telephones do

not work. Tele;! services are very poor. This is a big

handicap in communicating with the foreign buyers. Due to

the existing inefficient communication systems, overseas

buyers prefer to have trade relations with other Asian

countries. With the improvement in the communication

systEjms exports can be increased by 10-20 percent,

ii. Lack of Technological Improvement :

Brassware indu'stry in India has been using the same

technology adopted some 40 years back. On the other hand

our competitors Taiwan and Korea use the latest

technoiogicai methods and therefore are able to turn out

more items in less time. This is yet another factor that

enables these countries to quote lower price for their

products in the world market. While melting the metals,

dust particles and other impurities are required to be

Page 102: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

92

removed. The pre-^ent method used in India is laborious

and time CDnsu/oang and yet it is not perfect,

iii. Problems in Shipping ;

T>)e t'x'purt yruinoLxun efforts in Cv ass builder's hardware

and artware have to some extent been effected on account

of high shipping freight and absence of regular and

adequj^te shipping fnrilitjes for Bninn rifsstinations-

iv- Problems in Customs Clearance :

Exporters face bottelencks in the form of tedious and long

customs clearance procedure. They are faced with numerous

purposeless documentation and other facilities- Not less

than two huridreds formalities have to be completed

before one shipment is made. Due to the long and

complicated procedure of customs clearance and other

documentations, the builder's hardware and artware

e>:porters are unable to concentrate on the productivity of

their concBrn and increasing the quality and quantity of

their products.

V. Lack of Vayudoot Service to and from Woradabad and

Aliqarh :

Moradabad and Aligarh being the brassware centre, foreign

buyers would like to visit the units there, for business

negotiations as well as for guiding in design development.

Foreign buyers, particularly from the developed countries,

do not like to travel by road as it takes about 4 hours

from Delhi. Under these circumstance, they prefer

exporters to briny their samples to Delhi. Since it is

inconvenient and costly to carry the full range of

products and c/hibit them m Delhi, the exporters

reportedly suffer the loss of chances for high purchase

Page 103: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

9:?

orders.

" - Lack of Quality Control and Standardisation i

Quaixty 35 oi utmost significance to project the image of

Indian brat>sv-;ar or-,, to increase exports nnd to Bustairt ir>

the world marf-et. During the Survey, i t was found that

the ctrti^^ans are buying scrap m the open market which

contain-^ foreign matter such as iron. Items made from

such brass give an ugly look with black dots of iron. It

was also e.jpressed during the Sur\'e-/ that the raw material

used m production of brass/copperwares contains

impurities while there is no facility to test the raw

material. It was pointed out that drinkwares (EPN3 wares)

contain lead which is harmful to health.

vii- Lack of Design Development and Product Adaptotion i

The Survey revealed that the industry has been using the

outdated designs which get lukewarm reception m the

overseas market. One of the reasons for lack of new

designs is the reluctance of the craftsmen to incorporate

those in their products- Over a number of years, new

designs have beon developed at the Central Design Centre,

Lucknow, Design C(_-;>tre at fJoida, Marketing aruj Service

E>:tensiDn Centres m U.P. and Design Centre m Bangalore.

But these designs huve largely remained unused as precious

little effort has been made to publicise them among the

craftsmen. Further, the new designs, wherever adopted,

have not received ready acceptability of the overseas

cuE^tomers as the designs have been developed without much

consideration of customers taste and requirement. The

craftsmen also find it difficult to adopt them bPcause of

mtricatp technicality involved m pattern making.

Page 104: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

94

"^iii- Lack of qpDd Packaging s

During the Survey, it was noted that the packaging used

for e^tporting brasswares xs of poor quality. Generally,

the B,;porter5 use papers and currugated board for packing.

There 15 hardl-/ stny innovation in packing. Though,

colourE^d bD>; packing 15 also done the exporters are

reluctant to do so because of increase in cost. On the

other hand there 15 na incentive on coloured box packing,

iX. Lack of Organisational Support and Export Promotion :

a) Trade Fair Authority of India helps the exporters in

exhibiting their products in national and international

exhibitions- But during the Survey, complaints were

received from exporters that TFAI does not intimate them

well in advance for enabling them to organise the venture

m a better way, to get foreign exchange release, to get

GR waived and to get the samples made.

b) Trade Development Authority helps in promoting exports

by supplying the latest designs, samples, catalogues etc.

and arranging buyc-r-sei ler meets. In April, 1989 it

organised an exhibition of the latest designs and products

that arG in demand overseas. During the Survey, the

exporters revealed that the foreign catalogues, magazines,

pamphlets, samples etc. exhibited by TDA were generally

outdated and were, therefore, of marginal use.

Sometimes, the TDA, after securing samples,informs

individual exportes that it would be available in their

office and asks them to come to their office an a

particular day. The e-.porters complained that on reaching

the office at the sti[>ulated time, they would be asked to

come the next day as the sample was given to another

Page 105: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

95

ex-porter. DesadeD causing disappointment, this

arrcingement rpsults m loss of time and money.

c) Indian Institute of Foreign Trade helps to aware to the

e^poKters - nd conducts training programmes- But the

ejviporters who attended these programmes, expressed their

satisfaction and said that the programme helped them in

their export business.

d) Central Design Centre, Lucknow, during 1983-89, the

centre developed 63 designs of brasswares. They, on their

own, develop 1 he designs. But they are not aware of the

demand of those designs m the world market. The Survey

revealed that majority of the exporters do not have an/

knowledge of these designs- Those who know of them,

expressed dissatisfaction as most of the designs were not

found to be of saleable value.

e) Metal Handicrafts Service Centre was established m

Moradabad in collaboration v^ith the Office of the

Development Commissioner (Handicrafts), and UNDP- It is

equipped with imported machmar/. It has electroplating,

lacqiuermg, polishing and metal testing plants and

training workshop. It is yet to operate to its full

capacity. Its Duality Control and Research and

Development l.Ujuratory has been commissioned arid is m

operation. Though the MHSC provides servicing facilities,

many of leading designs should be copied by others.

f) The U.P. Export Corporation, there is a felt need for

an intimate working relationship between the U.P.

Brassware Corporation and the U.P. Export Corporation, the

former concentrating on the developmental aspects with a

view to help strengthen the production base and its

Page 106: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

95

modernisatTon, thp latter playxng a romplementary role m

providing the nece'ssary marketing support including

feedback on market information.

MajoriLv' of the crnfL&men contacLud during ll-»e» field

survey e'-ipressed ignorance about the comple/iities of

marketing and e>:preBsed willingnesB to market their

produce through the U.P. E; tport Corporation.

g) Pestal Basti or Pestal Nagari was established in about

24 acres of land m the vicinity of Moradabad to provide

better amenities and v-zorking conditions to the artisans.

It 15 a laudable venture. In these dwel1ing-cum-

worksheds, 564 artisans can be accommodated. Value of

each unit is about R B - 4 5 , 0 0 0 and for taking possession of

the unit, an artisan has to pay R5.4,0i30

after getting registered (Registration fee R5.1,000)-

During the Survey, Jtt was found that only a few worksheds

were occupied. The reason for low was reported to be the

inability of thp> craftsmen to pay Rs.5,000 to enable them

to take possession of the units.

Page 107: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

97

CONCLUSION AND SUGGESTIDN

1. Itt?m5 to Concentrate on j

The ]ndirfn fxpor tF:?r& of Brass builder's hardware and

artware should concentrate on the following items :

a. Tower bolts

ii. Door lever handles/knobs

11i. Door/window handles

iv. Window stays

V. Furniture fittings like handles,

knobs, hinges, catchers etc.

vi- Shovels

vii. Hoes

viii. Hammers

x>i. Crow bars

?!. Ghammellas

>;i. Sanitary fittings

>!ii. Plastic sanitary accessories

>:iii„ Decanters

;:iv. Flower vaser

XV. Aftabs

XVI. Planters

>;vai. Bangles Stands

xviii. Ash trays

>:i>;. Paper weights

vy.. Natrajas, Ganesh, Radha ?< Krishna

>:>:i. Peacocks

>;>:ii. Animals ?< European dolls

2. Packaging :

India's competitors have an edge over India m packaging

Page 108: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

98

which is attractive and study. Most of the items are

offered in card board packing. These packs ar^ stacked

snd are e>:pected to withstand the pressure. In some

cases, it was observed that the quality of card board used

for packaging Indian goods was poor and the damaged

packaging had to be 'bandaged' with glued tapes which made

them unattract. Indian exporters should use better

quality of cardboard for packaging the goods. Broad

specifications such as item's name, dimensions, material

used, design, shade etc. should be mentioned on the sides

of the packing for easy identification.

^' Catalogues :

The wholesalers, agents and retailers in the target

markets keep hundreds of catalogues for reference in the

loose leaf binders to help their clients in choosing the

products. Most of the catalogue are in English as this

language is widely used in business circles.

Indian e>:pDrter5 should bring out attractive catalogues on

the items offered. The catalogue should be in the form of

loose sheets and different types of items should be listed

on 56?parate sheets. Printing on both sides of the sheets

should be ^voided. The catalogue should give complete

specifications of the product along with prices. The

specifications should be given in both metric and imperial

system of measurement.

A. Samples ;

Exporters should carry a large variety of samples while

meeting the importers to convince them about the range of

items being offered. The samples should be mounted on

display boards for easy handling and better presentation.

Page 109: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

99

The BKporters should also carry some samples of packaging

of-fered.

The Lmporters expect the exporters to leave some samples

with Lheni foi as^eb'^ment by their clients. But it may be

difficult for the exporters to carry large quantum of

samples fur di-,LributiDn, So, considering the potentiality

of the deal, either despatch of samples should be arranged

immediately from India or on their return from the tour.

It 15 natural for the importers to e>;pect the quality of

the goods shipped to be of the same quality as of the

samples. So, m the interest of long term business, it is

advisable not to -send samples of a quality which can't be

adhered to an bulk shipments.

5. The First Order :

The Middle East market can't be tackled long distance by

correspondence and the visit to these countries is a must

for penetrating the market. Before personal visit, Indian

exporterE: should correspond with the importers, giving

them jnformalion cfbout the range of products, prices,

delivery 5C^(edules etc. They should allow sufficient time

to importers to react to the offer. Though the importers

gene^raiiy do not reply to such offers yet it is worthwhile

to do this ei^ercise which helps m getting appointments

with them for personal visit. The itinerary of the visit

should be communicated to the itnportBrB well m advance.

The epiporters should carry samples, catalogues and price

list etc. Tht^ vi- -it should be made by a senior person of

the firm, who should be able to take on-the-spot decision

on prices, delivery t.chedulBs etc. without referring back

to the headquarters for advice. The importers generally

Page 110: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

I 00

insist on diBcounts on the listed prices and this point

should be kept an mind. The first price offered should

not be ^lasf price isnd there should be a margin of 5-10

percent betvjoen the two, which should be negotiated m two

or three instalmentK.

Shipments particular] y against the first e;^port order

should be made m time. The quality of the goods and

packing should be the same as of the sainples.

Unfortunately, should a dispute arise for faulty delivery

IB should be -settled amicably m the interest of long term

business even if it results m looses to the exporter.

This should be considered a part of the overseas marketing

e,';pendi ture.

6. Appointment of an Agent t

It is difficult to penetrate the market without having a

good agent m the target countries, particularly for

exports to the Government and oil companies against

tenders. The e.iporters should choose their agents with

caution and care as dissolving of agency agreement or

changing it is a tough, cumbersome and time-consuming

procE'Ss. Wrong selection of an agent would cause

irrepairablE- loss to the e>:pDrters.

It IS advisable to do some business initially with

individual importers/agents on commission basis without

signing formal agreement for exclusive rights. The formal

agency agreement could be signed if the services of the

agent were found -.atisf ac tory. Tf.e following aspects

should be taken into account while appointing an agent,

(i) He should alread/ be established m the field of

general hardware and artware items.

Page 111: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

iOI

(li) He should have daspiay and storage facilitxes,

(iii)He should have distribution/marketing set- up in

the entire territory. For example, in Saudi Arabia,

he should have arrarigement for marketing of products

m Jeddah (Western Province), Riyadh (Central

Province) and Al-Khobar/Dammam (Eastern Province),

niternatively, CL-parate agents should be appointed

for each territory.

(iv) He should be familiar with local laws and

reyulations effertiny imports of your products.

(v) He should have a iairly large clientele of

importer s.

(vi) He should be able to arrange airline

bookings,accomodation and fix appointments.

It may be mentioned here that generally agent deal in a

large range of products. Agents charge commission on all

shipments made to the importers m their territory

regardless of the fact whether the export order was booked

through them or not.

The agent should be kept informed about the latest prices

and delivery sctiedules to enable him m bidding against

tenders and generating business from other importers.

Samples of entire range of products offered should also be

made available to the agent. Progress of the export

orders m . hand should be intimated to the agent

particularly when some delay is anticipated in making

shipments. Personal visits for export promotion should be

arranged m consultation with the agent and completed

Itinerary should be intimated to him well in advance to

enable him to fix your appointments. His services could

Page 112: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

102

also be utilised for obtaining businesB entry visa-

7. Marketing Consortia :

Most of the manufacturer exporters of Brass builder's

hardware and artware offer a limited range of products.

The exporters offerjng different range of products visit

the same importers, who generally deal m all types of

hardware and artware for getting e^jport orders. Since

personal visits to ttiese countries are quite expensive and

time consuming, the Indian e^jporters could economise on

such visits by forming a consortja for meirketing. The

cost involved could be shared on the basis of orders

secured etc. This type of arrangeirient is possible among

ejiporters offering different range of Brass Builder's

hardware and artware. This arrangement not only reduces

e.spenditure on marketing but also makes the visit more

fruitful by offering almost complete range of products.

Page 113: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

103

FORM CNX

A|)|ili(ii(ioiir(>c,\l|(t(iiini( (iriA()(ii(<'rN duU- NKIIIIHT

(lo he coiDplcic'd 111 (ki()lic;ili.')

A n n e x II re 1

Noll y/i/v (ii'plicniinii sjuiiilil hr < ompleiulonly hy ilir hnitlipii/ii i/>,il ojjhc oj ihc ci/ini/, i in lntli,i ,iii,l «nly fnu-ta.L iiiiiiihcr will he iilliiiicd to each cxpoi ler incspccm c oj u/icilia ilic cxpoii i\ iiuidc In ilic llvinl rniu'/iiil Ojlheor /M' ilicli hrdiitlics.

N;iii.'-' 1)1 ilK' cxporici (m block lcUl.•l )

i;i; A'.KUcsb in full (in block iciici>)ul Ihc llc;Kl7l'iinci|i;ir Ollicc 0'. iho c.xporicr

(b), Names, n;iiion;iliiics jintJ rc.sulcpii;il juidrcsscs ol piopiicior/pnnnL'ib/iliiccloi'b.

(c) Authorised & p;iid-up cnpiuil.

(d) Amouni invested in i.ie loini

D;iicorixsi;iliiishiKciil of ihc pio|)iieioishi|i conccin/liiin/conip;iny.

'i. i'niicipni a)Mimodiiic.slo bccxprlcd.

(;0

(I')

( 0

fi. N>iiue(s) iind ;iddix>vs(cs) ()l b:inkcr(s); ;ind the pcruKi lor w hidi tiie :ippiic;inl has been :: eon.siiliieni of his b;inkei7s.

6. Income mx permnneni iiccouni number of the iippiiciinl.

I/\Ve hereby tkckire Ihai this ;ipplic;ilion is iiiiide by us m oui (.;ip;icily :is legisleied/principiil olliee :iiul I Wc h;i\c m" obtained or iipphed lor ;iny Uxporler's Code Number previously in the n.imc ol Uom :m\ ollicc ol ilic IxCserveBnnkof indi;i.

I'Jiicc:'

Daic:- (Signiiiure ol ihc.'ippliaini)

(To IK: tompicled l»y llie Itcsti^e Hunk)

1. '"od-'^'imbcrnlloled:

Z. D:ilc of communiailion lo the :ipplic;inls :

Nolo lo lliu ExjKiiicr : I'lcnsc iiulioilc llK ;ibove Code Number below llie Mgn;iiurc ol the exporter on iill l);e copies ol CJlUIMWI'-COl) i<irms

completed and lodged by you or your bninches with the Cusloms/Posini :aithorilies. Please aLso v.uole the abcnc (,c)dc Number on all the correspondence you may have with your bankeib/Rcsei-ve Dank.

For Reserve Dankol liuha

T-GiTTTIuii^JT^nui;^!^^

Page 114: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

104

Doclarat,on for Exporter's Code (RBI) Numbor aboul^J;;;^;;;^ boing not on Caution fist ^PPHcant a

Tin li ml ( ..iillcilli r

Is i lui iL. f •iilri.lD, |,,r„iktil

KiM n i Miillv Ml liiiln

""'"''M""|M"..,v „,,l„,.,„nn, ,,„„,„„ I ' • ' " . . l i .xKMf ln .nh. ru l l .MI , . R . ^ n , H ,„k„r lnJ , ,

SfLiiiKiri ..f Pr,,|) Piiiimr Oin tlnr

( f l i iM iriixilK Miin|<i<l III! rinii/ l ' . I M | l l i | \ )

• ^^•^^^i.v^J.w i« "^^^Iw-v* -ari.A^**-« AlllKMIlC 3

Undertaking about Income Tax for Exporter's (RBI) Code Number

IWi liircliv iiciJitiil,, 11 MiliMit In ilii Risir\i Uinkiit Imlii LMIIMIU CIMKILI Dip itliiu ill Ihr nil Mm 11\ Gi m ril lnUi\ 11 UMIIM HI \U< mil Nuiiilui williiii 11 d ly.. Iiinii llii ilili iil iK illniimiii In iiii/ii< In lln liHiinu IIX Aiillinnliis illullii lirsi ivsissimni IM.MT

' i(,iiiiliiM 111 Prii|iiii li)i/)' mm I Difi 1 inr

Ci'inp iiv

Ailda s

UA>b.fi^\.^vu^\^ ' ^ ^ ^ ^ > < . _ ^ \ u » ^^^^ » .^^> / . i ? J r tn <y,r.iX.a^.AJjMC^A.i"h>i^i.-»J.>-iM,./.Mit.A/'^.t^ Aii i iof i i fe • ' " I

List of Associate Firms/Concerns for Exporter's Code (RBI) Number

RiMm Bull,<i| liidii r \ i l nn | I rnillTitl Dip irlim ill

Niw Dilhl

Naim(^)jiiKl Hlt(i\ss(s) III llu nilu r hr n(^) ii'tmrM(s) \Mlli \\liiiin IIIMK IS isvtiiilul

1

2

^ Plict Sii fiiliirt <'I llu ip(ilu ml \v(l)( si iMij)

Dull J Adiliiss

Bank's Report to RBI for Allotment of Exporter's Code Number cofirwtmTAL Dale

lUI No

niUninirnnirollir 1 \c\ nnfi Ponlrnl nipirlniLiK

Iti iivL l l i i ikt i l Imh I

IJciirSii

Allolmiiil of Lxfioikr s f IXIL NO

Aye M/s

1 N.imc of fimi/compmy 2 Nalurc of firm/company (I'ropnclory, Pnrlncn;liip, liUr, L.milcd Compony)

3 (i) I irm'';/Compiny s ncJdrcss

(u) iniiinilcdcompinyO'liisc iKo mOicitc)

(n) Hcgd Office

(b) llc-iii Office

4 (i) N inK(^) of firm Vcoinp my s propriclor/p irlncrs/dlrcclors

(ii) liLs/llicirrusKlcnliil xldruvs

•i OiltofLSl ihh Imnnuiniicfirni/compuiy

f) Dm ofcominLiKChiLnlorinismcv.;

PtrKxl for wliiUi ihty li ivc be. :i b mUr; lo llic fimi/comp my

., M. ms nn<l fin inc, >1 .Lmiling of ihc f,rm/con,p"ny mi nnlorc of busmen. ^^^^^ ^ ^ ^ ^ ^ ^

(Sign iluft of llr inch Maniigcr will) ' ' - n,„nrM

Page 115: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

1 0 5

K;';':ksM^^;-hS'^m%Mm':L;:M^i^szi;;^^^i^^ Anncxure 5 ^ ^ S a

Certificate of Payment to be issued lo Sub-Contractors

I Form 1-B rcrtilicnic ol" l';iynicnl lo be Issued bv Ihc I'mieci Aulhorily lo Ihc Sub- Conlniclors Whose Niimc Apf)C'in> in Ihc M;iin

Coninicl for Supplies lo(Ol'iojedsriiKMKVi) by iniU)11M/ADlV13il.'ilcr;n/Mulliri;ilinnal Agencies or (ii)ONGC/GAl^

1. Certified thai M/s. is an Indian sub-contractor to M/s. (Main Conlractor). The conloici of the main contractor has been accepted by us vide no. and daicd— llic name of the Sub-contractor hiLS been included in the main contract itself and the description, quantity and value of llic gcKKls which has now been supplied lo us has already been indicated in thcmain contrad. These supphcs conforms to the specifications laid down in the main contract.

2. It is also cert.ificd that the goods/equipment of quantify and value as described below and invoice No. dated have lx;cn supplied to us by Ihc above mentioned sub-contractoron (indicate

the date of supply) against purchase order No. dated and wc have paid lo the sub-conlrao lor, namely, M/s. the sum of Rs. (in words) on the- . (indicate tlic dale of payment) being percent of the value of the goods/equipmcnts/capital goods supplied as per icnns of the cc^laict. •It is furtJ}crcerlificd that IhcsupplJes have been in terms of the contract dated ^^nicred into with Ihcsupplies and the suppUcs have been accepted by us at the price stated in the invoice. We arc satisfied that the supplies have been made at international prices.

OR

••It is further certified that llic supplies have been made in terms of the contract secured against international competitive bidding in the - -project being undcrtai<cn by us and which is fully financed by the assistance from IBRD/IDA/ADB/Dilatcral/Multilateral aid and the supplies have been accepted by us at silc at Ihc price slated in the invoice.

Signature

Designation

Name of the Projccl-

SlaLion

Date

Description, Quantity and Value of goods supplied.

Signature

Name -

Designation - •

Name of the Project

Station

Dale-

Note : (1) Below FORMA 1-A is equally applicable in this case

Page 116: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

x u o

LI / \ 11 no Ml re 6 ZJ

Appliccilioii Fotiii Foi Al lul incnlof Iinporlci/ExpotlcrCodc (IEEC)/ldanlily Curd and Modification of Particulars of an Existing Company, Firm Etc.

N o l l ' : — —

1. Applit-.iiion niusi be m;idc in llic picscrihtd lorm in dupliailcduly !n.<.()m|7;ini<.d hy l);ink Hcccipi/IXnKind Dr.-iH cv idtncmi: pnymcnt of Ice. ~

2. Applic.ilion form bhould be nolly lypcd/li.ind wnllcn in bold c.ipii.il Iciicn. only.

3. Cii^ii coj)y of Ihc ;ipplic.ilion lui ni should be signed in ink by llie .lullioi iscti person.

4. Sup()oilingdoainienls in dupii(.;ile;iss|Kcilied iiiiisl be included \viKi\.\er;ippiic;ibic.

5. llems of infoini.ilion rele\ jnl lo ;ipp!ic.iiil slumld only be filled iiiid rem;iinini;; iiems miiy be miirkcd nol ;ipplic:ibk(NA),

6. NUKlificiilions c I piirticulnrs of ihc npplic;ml should iiLso be lumislkd on ihis lorm by lilliny Ihe relevnnl iiems in :idUiii()n 10 iloms iipjx'iinng <ii SI. No. 1 lo 5.

1. ApphciUion Sinius :

(1) l-orncwlLC

2. Niimeof ihe.npplicnnl

3. Addiessof lhe,i))|)lie;inl

4. r;irlicul;irs of Fees I'iiid

(2) i or sinlus modillailion

Q) ]\)rIdenli(yC.'iird

Cily

Sl:ile/U.'r.

I'lN

(i) Dank Ueceipl/Demnnd Draft No.

(ii) Dale of Issue

(jii) Anioum (in Us.)

(iv) Name of Oaiik & Branch of Issue

5. Lxisling ICC (if previously allolled)

0. Cxislingldenlily CarONo. (if previously issued)

7. R.B.I. Code No.

S. Dale ofcslablishmcnl of Ihe company, firm elc.

Dl) MM YY

J J

13 3

d d m m y y

Page 117: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

1 0 7

^i^:;::z;-::;:i^^:;::iz: >.v^,^^;\^^^^^^,l '• '' • "• '•'••••' • ^ •'•• - .' ^.'.A.^svw.vt..^ .., ,, Anncxure 7 77?? 1

Application for Grant of Export/Trading/Star Trading House Certificate NOTE: Picasc raid (lie General Iiistruclions n( (lie end of nppliailion before filling (he Appljaidon.

I.

3.

4,

5.

G.

7.

8.

9.

10.

S.No.

12.

S.No.

Ucf. No.

ApaUcaiion for :

I ECode Number:

Siaiusof ExfKirlcr

Naiurc of Concern

Rccstercd with

Regn.No/l.LNo.

Da(cofjEs(;iblishmcn( :

Date :

Code

C(KIC

Codi.

Code

Da(e:

2. Name : Address :

FlEORCMCNo.: Issue Da(c: E.\piry Da(c:

Branches (In india/Abrwid):

Name of Piacc/Counlry Code

Dc(aib of Lnsl three Export House/Trading Ilousc/Star Trading House Certificates issued earlier (if any).

Certificate Number and Dale Validity

From To

11. Associated Companies

SI. No. Company Name

13. Registcrcd/IIcad Office Address

14. Name of Ihc Dircc(ors/I'ar(-ncrs/ i'roiirietors or Karla as the case may be :

15. Statement of Export/Net Realisation of Foreign Exchange

Licen­sing Year

(1)

Category of Exports Code

(2)

Export Product Group

(3)

Non-SSI

SSI

Handicrafts

Description of Items Exported

(4)

Item Code

(5)

Counliy of Exports

(6)

FOB Value of Exports (in Rs.)

(7)

Page 118: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

1 0 8

EnriJUSrn-A,,,,;cauon P arm for RcKistraiion

CIF V.iliu- (if llicg()(xis

^Othci lh.-in C.ipilnl Goods)

By Ihc hrm

(S)

Name of Assocmlc or ijupporling

niaini-fncliircr

V.'ihtc of Puymcnls made in l~E by way of

com miss ion/ Hoyalty/

Fee or Any oilier Charges

Tol.'il of Columns (8+9+10)

NFl] (column) (7-11)

Wcighlngc (Apply Single/

Double/ Triple 35 per

Category of Exports

NfTZ nficr 1, Wciglitage I

(9) (10) (11) (12) (13) (14)

DECLARATION c u / r " ' ' ' ' '^ ' ;" ' ' ; ' ' ' ' " " "'" •'•" ' - •''"'^ "'• l '<P»r" /Ncl Foreign Fxchnngc of Product .shown above as manufactured by bbl/LoUagc/IIandicraft Sector compnscs items manufactured only by SSI/Cotlagc/IIandicraft Units.

I further certify that I am authorised to verify and sign the statement on behalf of Ihc applicant.

I/We fuUy understand that any information furnished in the above statement, if proved incorrea or false, will render me/us liable for any penal or other consccjuences as mny be prescribed in Jaw or otherwise warranled.

^''"''^ Dale . Signature & Stamp Full Official Address of (iic signatory

Full Residential Address of Ihc signatory ' •

Note: (1) The applicalion lias to be signed by the I'artner/iVoprielor/M.-inaging Dircclor/Director of the company. In case It is lo be signed by an aulhoriscd signatory, a copy of the Power oi Attorney should be furnished.

(2) llie information should be neatly typed.

(3) Incomplete application will be rejected.

Certificate of Chartered Accountant/Cost Accountant/Company Secretary I/Wc hereby confirm that I/Wc have examined the prescribed registers and also the relevant records of

for the period from to for the period/year ending

(i) M/s. and hereby ccrtily that:—

(full name and address of the applicant) have realised the sale proceeds in net forejnn exchniigc lor (lie e\|X)ils made for each of the three Iinanciai years/during the preceding financial year as specified in llie.slalcmenl of exports at SI.No. 15 and in icspccl of the abovcsaid exports made for which sale proceeds liavc not been realised, the lime limit lor net realisation ol sale pioceeds hiis been extended by Ihc RBI,

(ii) 'Die following documenls/iecoids have been furnished by lhea|iplicani and have been examined and verified by mc/us namely:— Export order/Conirael, slii|)ping hills, IJill of biding (antl/or Ainsays iJilLs/PP HeteipLs), Cusloms/IJank attested Invoices. Hank Cciiificalo sliowiiit; iciilisaiion of sale proceeds, evidence ofpaymenls received in foreign exchange in their own name and coniieclci. books ol accounts,

(iii) llie Net Foreign Exchange Earnings have been ailciilaled by deducting the following from the f.o.b. value :— (a) llie cif value of all goods (olher than aipilal goods) imprled by the applicant in his own name or through his

associate or supporting manuracluier(s) which have been ased in manulaclure of the gcxxJs exported; and

(b) Tlic value of all paymenis made in foieign exchtinge by way of commission, royally, fees or any other charge for the exports made.

(iv) Tlic relevant register has been authcnlicaicd under my/our scai/signalurc. (v) nie fob value of products manulaclured by SSI/Col(age/iIandicraft sector units and net rcalisalionoffoeign exchange

thcreot as shown in llie slalement ol e\porls/Nel realisation of foreign exchange is correct, (vi) The financial infonnation given m [\r, above slalcmcnl is in agreement v;uh the relevant register and records; the

name has been mcoiporaicd in Hie books of accounts mainlamed b) llie ex|vrler; anil is al.so true and correct.

(vu) It h.is tx:cn ciwuwl llial Ihc inlonnai ion lunibhed is laie and convcl in all resi>;a; no part of it is false or mislaiding and no relevant inlomialioii has been cxiiioeaicd or wiihhckl;

Page 119: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

1 0 9

(viii) Ncuhct I, nor ;iny of my p:irtncR is ;i partner, dircclor. or an employee of ihc above-named cnlily or ils ;issociatcd concerns; ' **

(i\) 1/wc lull)' undcrsiand ihai any sialcmcnl made in (his cerlilicaie. if proved incorrect or faLsc. wlU render mc/us IJnblc

for any penal or oilier consccjuences as may be prescribed in law or olherwisc warranlcd.

(Signature and Sianip/Scai of (lie Signa(ory)

(Ciianca-d Accounlant/Cosl Accounlanl/Company Secretary)

Name of ilie Signatory :

Pull Address:

Place:

Membcrstup No.:

Date:

If any of tbc docunicnLs or records mentioned in item (ii) of liie ccrtifiGitcs liave not been miiintained/fumishcd, examined or vcriGcd, ilicy may please be specified bclovk':—

1.

2.

3.

GENERAL INSTRUCTIONS 1. Applicants jirc advi>;ed to careliiliy read llie policy pros'isions tmd other instructions contained in UK nxporl-lmporl I'olicy

1992-97 and Hand Dook of Jixporl and import Procedures before filling up this form.

2. Application should be neatly typed or handwritten. All the columns should be filled up in Dipilal letters.

3. Incomplete or iilcgibic jipplication wiU be summarily rejected.

4. Both names and codes should be written wherever applicable,

5. For Item Codes, Export and Import Policy may be referred to. If Item code is not available, write *Na^.' against the relevant column.

6. Use following Codes and Names

For 51. No. 1 : 1-Export House, 2-'l"rad)ng House, 3-Slar Trading House

For Si. No. 4 : 1-Merclian( Exprtcr, 2-Manufacturcr Exporter Non-SSI, 3-Manufaclici Exportcr-SSl, 4-Mcrchant-Manufaciurcr Exporter

For SI. No. 5 : 1-Govcrnmcnt Undertaking., 2-Pub!ic Ltd., 3-Privatc Ltd.,

4-Propriclory Firm, 5- Palncrship Firm, 6-Olhcrs.

For SI. No. 6 : 1-I)G TD/SIA. 2-SSI, 3-0'rilEilS.

For SI. No, 10 : Leave Countiy.C.'oile Hlank.

For SI. No. 15 (Col 3) :

61 - Engineering Products 72 - WooUcn Textiles

62 - Qicmiaik And Allied Products 73 - Naiural Silk Textiles

63 - Plastiics 74 - Ccllulosic/non-ccUulosic/Mixcd Blended Textiles

64 - Leather And Leather Products 77 - Cinematograph Films (exposed)

• 65 - Sjwrts Goods 78 - Coir Products

66 - Fish And Fish Products 79 - Natural Fibre Products

67 - Food Products 81 - Gem and Jewellery

68 - Handicrafts 8 2 ; Stainless Slecl Products

69 - Cashew Kcmek 83 -.Electronics

70 - Tobacco And Tobacco Products 90 - Miscellaneous Products

71 -Cotton Textiles

Page 120: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

110

Quality Control and Pre-shlpment Inspection Authorltlos and Export Producta covorod undor DIHcrent Schomoa

Ai)llti>illy CamiutHiitlcs Kciiinilci

Export Ins|Xction Council Uimuph CxjOrt la i jxc l ion Agencies (CIAs)

Agricullurc Marketing Adviser, Nogpur

TcKlUcCommillcc

4.

5.

6. 7. 8. 9.

10.

lliirciu of Indian Sl.'mdards

Drugs Conlrollcr

'I'cii Itorad

Coffee Doard

CcnlralSilkEkxird

Slicllac tx(x>rt I'romolion Counal

SriU Commissioner

^ ^ u W ^ ^

Cnlcpory *A*

CngicKinnggcxxIs , MICH, I'mnlsnod Al l ied Pnxliids P V C Icnilier clolh, Co'' humnn h iir.giim k.irnj.n, c.i'^hcw kcrncK, mnrlne prtH'uci':, pnlivyrn fibre, DnsmnU rice\ pc(>-pcr^, cic.

Cnlcgory '\i'

engineering & l igli l engineering goods, or­ganic " i d inorgnnic chemicals, l.nund.iry so.ip, nihhcr ()i(Hliic:f\ iimrgmiic plgmcnls, rcfmciorics, deoilcd rice brnn, etc

CiilcRor^ ' C

Julc licssiaii nmS certain specified engineer­ing and allied llcnis

Cnlcgory * ! ) '

Managancsc ore, iron ore, fcrro-mnnnganesc, bauxilc, e(a

Cu(egoi7 'E '

Manganese d iox ide , cl i roroc kyan l l e , sll lmanile, 7inc magnesilcs, barytes, red oxide, yellow oclicr. c lc

rood, agricultuns and animal products (ex­cept cashew, coir etc.)

A l l catcgoiii."; of niillm.Klc collon ynm, and tol ion Icxiilc, and Ijlccdmg Madras and Elawah strip varieties of handloom fabrics

' Ic iduv;! plywood panels and Aluminium ulcnsils.

Drugs, pharmaceuticals and cosmetic

products.

l e a

Coffee '1 ns'-ir mulberry silk f.ibrics

Shellac

Rait

l l i e Export lns|Kction Agency (C IA) ' , ns Ihc 0()crniinn,il body o f C(C, Is (he sole Inspection authority.

In addii iijn to E I A. Recognised pnvalc inspection agencies arc also authonscd to inspect goods.

Dcing opcralcd directly by EIA

l l i c r c arc over 30 recognised private Inspection agencies which conduct prc-shlpmcnl Inspection

In accord.nncc wi ih tlie procedure laid down by the Export Inspection Council.

Under the A mark Grading Scheme.

In addilion, l l i t rc tire a number of Incentive (incnltd ln'.[x:clion schemes, for staple fibre, yain and f.ibrics, woollen fabncs, woollen & mixed hosiery goods, synlheiic fabncs, woollen yarn, clc, under the' Icxi l le Committee Act, 19G3.

It operates ISI Certification Marking Scheme

Process-controlled

Graded by icslcrs/cxpcrls prior to auction

I'rc ";hipmt.nl iii'.pccllon Conlrol

I'rc shlpmcnllns|)c(llonconirol

I'rc shipment Inspection conirol nl processing plants.

A n n c x u r e g

Govt. Export Inspection Agencies -Geographical Jurisdiction and their Operation

Ni imcDf l l ie Agenc) J i i r l sd i i ' l i i i i l i i I h c S l u l e V U r

I \pni l In^ju vttoii \ n\') Miimb ly Am III ( h i i i i l n r ( l l l i l lodi) , I '."I, M k.iiM- KO.KI

Ilortlh.iy-'IOIKXW

1 \p<>il Ins ixt l i i i i i AgciK) —(".ilcull 1 World Ir.ulc Ci-iUrc l l / m i / f . i S i r u l C. l lcu l l . i -70l )00l

1 \pori ln'-|Xclion Agency—Cochin

M . n o h i r l l l d g . M f, UoncI Ltn.ikul.ini Ccchin-6S2 011

I \|XMI h^ jxeuoi i A i e i ic i—New Delhi

Municipi M.ukel IJIdg

•j , S.irasiv.nli Marg K.irol n i i ;h New Delhi - 100 01)5

I \inMI insiHdion A r u u y - M ulr.is : ' n liny i |><l l i l i l l i i ; l i l !o,Hl Madras-600 014

CJii j i i i i l , M.ih ir.ishlr.i,

Dninail and Diu

O.idi.i and N.igar l lave l l , Ooa,

Ass,mi, Bihar, M.inipur. Megah.il.iys, Nagjl. ind, Onssa, i r i pu ra . West Bengal, Sikk.nn, Arunachal Pradesh, Mi70r,im, And.im.in and Nicobar Islands

Kcrala.Kamnlaka and Uikshadccp

ll.iry in.i, l l ini .ul i . i l rr.ulesh, J.iinmu.md Kashmir, Punj.ib,

M.idliya Pradesh, Rajashlhan, Utlar Pradesh, Chandigarh

and Delhi

Andlira Pr.idesh, lami l Nadu and Pondicherry

Page 121: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

I l l

Annexure lO

SI. No.

i i > i i i i i - i i v , i i I •' • • " • ' ^ "

Export Promotion Councils, FIEO, Commodity Boards, Development Authorities

_j ErCs/FILO/CJl,e(c. I'rwiucts

1. Lnginccring bxpoil Piomotioii Counci "World Trade Centre" 14/lD, Ezra Slrccl (3rd noor) Calculta-VOUOOl.

Territorial Division

Vandana, (4lh floor) ll,TolsloyMarg New Dellii-llOOOl

(i) Export Promotion Councils Engineering gwxis, stainless slccl products, mica, fabricated mica, mica b.ised products, mica powder, mica scrap, processed mica and construction services. Project exporters am also register themselves cither with the Engg, El'C or the EIEO. Tlicn, they need not register with the other CPCs/CUs, etc. concerned with each of the prcxiucts covered by the project in question.

RegionaJ Offices

(1) Ccntrcl,12lh floor, World Trade Centre CuffcPaiadc Bonibay=4tl0005

(2) World Trade Centre (1st noor) 14/lDE/rn Street Cnluitla-700001

(3) Maalavika Centre (3rd floor) 144/145, Kudambakkara fDgh Road Madras-600034

2.

2 3 4

(4) •Surya Karan', (4th floor), 19, K.G. M.rg. N e w D e l l n ^ ^

[s i ]b^egional Oftices |

(2) Vinayaka Complex (2nd floor) 44/45, Residency Road Cross lUuigaioic-560025

(3) 45, Guru Teg Bahadur Nagar Jolandhar-144001

Oversells construction and civil engg. products

(1) 405, Chinubhai Centre Nehru Bridge Ashram Road Alimedabad-380009 Overseas Construction Council of indi<i, Commerce Centre, 7th floor, j.DndajiRoad.Tardco, . . -nnrwi

Promotion Council, comiuUcc SOIV.V.TC and rtU.ltd scrvi PUD House, Il.ni/ Kh.is, silvered mica plntcs. New Delhi-U««"l^-

dots nol >|)i.i.Uy inv pioihicl iltill wiili ov iny i i v \\\) TTic cxnoiltr;, olliir linn Lxmul Uoust^, Irtiluig HOUSLS niul Si ir rmlingUoi

line ot DusiiiL-is 'lie I l ini l /STll arc lo n.i;isli-r wilh lliu 1 ILO only ( m) \{ Ihc cx|XMl punlin.1 1"; such which is noumi ic'il by my Ll'C, Rgislnlion cnii

• • - .1... ioon_o-i Import LxpotI Polity (\\\) \C Ihc CX|xm pUHniv.1 I , ,„ AssiipulalcJ in Ihc 1990-93 Import Lxporl Polity The rcgislnlion is ilonc nl IJombay Otficc The RCMC issutil liy iht 1 ngg Tt'Clo Ihc cvjHMUtsot niici cipicilui^ -wA siKtitil unci pliUj\ c\(\)clirj may ngisltr .ilrtsh wilh the Lite .t bollwart Ll'C i lkr Ihc L\piiy ot RCMC iv-ui J by

, U l . w o u U , c o n , i n . e . o b c . . M . - . . U . « p . n r . H o w . v « . « c .

Ihc Lngg l-i L

Page 122: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

112

Si. No.

l£PC.VFlEO/CU,ctc. l'lt)clllC(S

4. Plnslics nnci Linoleum UPC, Ccnirc 1, m i l JKxr, Unil No. 1 World Trade Ccnirc, Cuffc Parade,

(I) Sire Mansion 123, Mount Koad, Madra5-600006.

5. Basic Gicmicals, Pharmaceuticals and Cosmetics Export Promotion Council, 7, Cooperage Road, Jhansi Caslk (^tli floor), Bonibny-400001.

0) 23A & 2, 6lh Main Road, 3al Cross, Gandhi Nagnr, Darigalore-560009

QRmicals und Allied Products EPC, "World Trade Ccnirc" 14/10, Ezra Street, (2nd floor) Culcut(a-700001

Plastics, toys, poij'cstcr d m and allied produas, human hair and human hiur ()roduct-s

Regional Offices

(2) World Trade Centre 14/lB, Ezra Street Calcutlu.700001.

Basic chemicals, namely, drugs, pharmaceuticals & fine chemi­cals, dyes, inlcrmcdinics, alcohol and coal tar chemicals, organic chemicals, agro chemicals, glycerine, soaps, detergents, cos­metics and toiletries, processed (ale, agarbaltis, essential oils, dehydrated culture media and crude drugs.

peglonal Offices

(2) Kankaria Eslalc (9lh Floor) 6, Little lUisscl Street, CiilcnUa-70«»71

Chcniio'ils and allied products, namely, glass and glassware, ceramics, .paints, rubber products including tyres and tubes, paper and paper products, including books, journals, and pcri-odiails, safely matches, fire works and explosives, ccmcnl, asbestos and cement products, wood products, polyester chips, marble chips, adhesive, shellac compound, all minerals exclud­ing diamonds and mica, fabricated mica and mica based products but including processed minerals, atomic minerals, granite in all forms covered under Mines and Minerals (Regulation and Development) Act, 1957 and the Indian Trade Classification based on harmonised system, salt, aluminium (other than products), alumina (all forms), prototype set films and micro films.

Regional Offices

0) Rashid Mtinsion 622, Anna Salai, Maaj-as-(iOOOO<>

Gem and .Icwcllcry EPC Diamond Plaza (5lh floor) 391A,Dr Dadasaheb BhadkamkcrMarg Borabay-400004

(2) D-17, Commerce Centre, Tardtfo Road, lJo.nbay-40()034

Gem and Jewellery

(3) Lakshmi Niwas 8, Shahccd Bhagat Singh Marg, New Delhl-110001

In tc ,»ccl of CMHMlcr;of ,iliimin.i hyi!iMc and iTicJ l)ascd nroduclc, lire KCMC K^ucd l.y llic lis-./c Chemicals EPC(S No. 5) and Lfcc^rpnict and Comrjutcr So.lwiic 1 VC {S No 3) will remain valid. 'Ilicrcaricr, (he rcgi Products t r C .

gi"(acd exporlcrs shall be required'to (iroduce Ihe RCMC Issued by Ihe CbcrolciU »nd Allied

Page 123: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

1 1 3

A'PoiiJ'w. Cotm., FlEO, Comiii. liomds. Dcv. AiiihoTtw^

SI. lirCs/FlEO/CU, elc. IVoducts

8.

10.

11.

W

iicgd. Onice : \}-l5. Commerce Centre, (4lh floor), Tartleo, IJonjbay-400034

I Regional Offices

0) R;ij.islli;ui Ch;im!)cr Dhavan, M. I. Jload Jaipur-302003

Council for Leather Exports, Leather Centre 53, Sydcnhcms Road, Pcrianict MadrBS-600003

(2) 1 ii^li Tower, Nugambakkain High Road, Jaganathan St. Mudrus-400 034

(3) Jhandcwalan Complex, Rani Jhansi Road, New DCIIJI .110055

Finished leathcrand leather goods, chrome tannedblue hides and skins, chrome tanned hides & skins, chrome tanned, crust leather, E.L tanned hides and skins and E.I. crust leather

Regional Officeg

( 0 151218, Civil Lines, Post Box No. 198, Kanpur-208001

Street Calcut(a-7000I6

Sports goods

(2) 202, Niranjan 2nd Floor, 99, Subhas Road Uombay-400002

Sports Goods Export Promotion ConnciX, lE/6, Jhandcwalan Extension, New Delhi-110055.

Regional Onice : 715, Model Town, Jallandhar-144003

Cashew Export Promotion Council Woi ld Trade Centre Mahatma Gandhi Road, Ernakularn-682006.

SJicllac Export Promotion Council World Trade Centre, 2nd floor, 14/113, E^ra Street, Calculta-700001.

(3) 27, Mirza Ghalib

(4) Flat No. <SQ & (M, Gopaln Towers Rajcndra Place New Dellji-UOOOS

Cashew kernels, Cashewnut shell liquid and other byproducts of cashew

Liic in all forms

Apparel Export Piomotion Council '4thHoor',58, "Saliyog" BUI., Nehru Place, New Delhi-llOOl';.

(1)

Bajnj Bliawan (12th floor). Nariman Point -l}oinba.>-40l)021.

(4)

2 /2Bl lonn MmhSarani Cakultii-7(M)()71

Rcadyfii.-Kle garments (cxcl. wooJlcn kmiv/cst and garments of lealiier, silk, jute and hemp)

Begional Office

(2)

Karumulliti Centre (3rd noor), 498, Anna Salai Madras-600 035

(5)

B-17nClK)muIIoase Jaipur-302 001

(3)

10, Raheja Cliambcrs 12, Musuem Road Uaiigalore.S60 01

(<5)

H.No. 112, Partap Colony Mfxlcl Oi.iiiis Lmlliiniia-141001

(7) Muiugcinp.ilayani, Olf. Avmas'ic Ho.KJ.Tinipiii-- 638 002.

1 Al<.oal

MM) a

(\) Sim 111 llou i . d r lloor, 72-71, Niliiu I'litc. NtW IXHii - llOOl'J.

(1) Co\imniiulv( mtic, Niniin I'hwc-l, New IXIIil - 110 028 I AirCiit;oCi'ni|!lL\,.S,ih.ir Village, Room No 73, \ ilc I'arle (IJM), IJombiy ->100 099.

Page 124: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

114

SI. No.

13.

14.

EVCs/l'lLO/CU. e(c. I'l-odiicts

Tlic S>nlliciici!nd R.iyon Textiles El'C, Rcslvim lJhn\ nn 78, VccrNnnnian Kodd, n()iiilM\j-400 020. Pho/ic -204 S7 97, 204 86 90 Tlx: 011^83703

Non-ccllulosjc producls, cellulosic producl<;, blended products from mixture ofcotton/celiulosic fibre or y:im. nylon polyester fibr or yam, acrylic knitwear^

Regional Offices

(2) .33, Hiiktim Singh Road Artvrilsar, (Punjab)

0) Block No. 3E, Resham Bliavan, Lai Danvaja, Sunit-395 003 (Gujarat) Tlic Indian Silk Export Promotion Council 62, Mitlal Chambers, Nanman Point lloinba>-400 021. Phone: 202 5S 66, 202 66 62, 2S7 46 06 Tlx: 011-83190

(3) (4) Mat I larkistun Kaur PHD ilouse Sarai Building (4lh floor) Civil Lines Ilauz Khas Ludliiiin!i.J41 001 New Dellii -110 016

All natural silk fabrics, madc-ups, garments and machincmade carpets.

Regional Office

15.

16.

17.

(1) Indian Silk EPC C/o M/s Hanuman Weaving Factory Tank Bund Road Near City Rly. Station Bangalore-560 053

Carpet Export Promotion Council, Rat No. 21, B-2, Shopping Complex, Safdarjung Development Area, New Delhi-no 016.

(2) Indian Silk EPC C/o M/s Danaras Silk House Ltd. New Delhi House (] 1 th floor), 27, Uarakhainba Road New DeIiii-110 001

Ilandmade/woollcn/synlhctic carpets, rugs, durrics, druggets and namdhas incl. handmade silk carpets.

Regional Office

(1) Kalccn Bhavan (Isl Door), Maryad palli, Bhadui, Dist. Viu anasi (U.P.)

Export Promotion Council for Handicrafts Handicrafts 6, Community Centre, (2nd Door) B.mni I^k, Daianl Vihar, New Delhi-no 057 Wool and Woollens Export Promotion Council, 714, Ashoka Estate, 24, Barakhamba Road, NcwDcllii-llOOOL Phone : 331 55 12, 331 52 06 Tlx: 011-66673

Woollen textiles, hosiery, knitwear', mixed fabrics & maciiincmadc woollen carpets, rugs & druggets, aayLtc knit­wear , flax yam and flax products.

1 Exporters of hantlloom piodurK cm hnc rcgiMralion wilh tlic llandloom FfC 2 i:xpor(crsoficnlTClnm^rirciii iKo h;iic (cgKlnlion Willi llir Woo) and Woollens ! I'C 3 WlMXMlcxof.cniic (,,u(^c.rcinal o Invc a y l.illon xvill, ll R.ihcr, 11 Is necc-'iry for c>po.t of cjuoU Mcms loquol. coun.n«.

(1) iJi'V.ic,^ of In'ullooM, piculae t., olhcr Hun .c.dj m.dc g.rn.cnU, can have reg.slral.on wll, Ihc llmdloom bl'C

Page 125: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

1 1 5

SI. lil'Cs/I'lEO/ClJ.clc. No.

0) Ciiurcligatc Cliambcrs (7th floor), 5, New Mnrjnc Lines Bombay-400020

8. Cotlon Tcxlilc EPC Engineering Centre (5tli flooi) 9, Mallicw Road l)onibay-400004. Phone ^828 2910, 828 2911, Tlx: 011-75466

(1) lOUAshokaEslnlc, Darakhariiba Road New Delhi-llOOOl

(4) Mount Chamber (2nd floor) 758 Mount Road Mn(lnis-60()002

(7) 593, Cross C\\\. Road Gandhi Puram Coiinbiiloic-I2

ExiforcPto.Cotin

I'roduds

[Regional office s

(2)

, PlEO, Con If It. Boards, Dcv. Authortles

704/3, Gurdcv Nagar Pokhowal Road, 714/3, Gurdcv Na^a^, LiidIiiann-141001. Phone:30173, 35842 Tlx: 03S6-257 WEPCIN Grames: EXPROCIL

Cotton textile.";'

828 2912

Regional offices

(2)

N/113 Ezra Slccl, World Trade Centre Culculla.700001

(5)

Export Documentation Centre Didg. WiUingdon Island Coclim North End Cocliin-rJ82003

(8) "Jayanlhi" (2nd floor) 4SA SS Murthi Road 'rii(icoriM-(;28002 fla milnadu'

(3) Jaldarshan Housinc Sociely Ltd. 0pp. Natraj Cinema, Ashfum Road Alimedat)ad-3S0009

(6) Air Cargo Complex Sangancr Airport Juipur-3020a (Rajasthan)

19. IJamiloom l-J'C "K;isliecd Mansion", (5th Iloor), P.O. Bag No. 461 622, Anna Salai Madras-eOOOCXi. Phone: 478879, 476073 Tlx: 041-7158

nandloomprakicls covered by S) No. 17,18 above and blended protlucts fiom mi,\lurc of cotlon/ccllulosic fibre or yarn, nylon polyester fibre or yarn, acrylic knitwear

Regional Offices

XVI- 784/85, D.D. Gupta Ro;id, Kai\)l Uagli, New Delhi - 110 005

(ii) FIEO-Pcdcnition of Indian Export Organlsalion/

Federation of Indian E\|X)rt Orpani.sations 'PUD' Ikuiso. n.iu/Kh.ii Now l)cllii-11(1(116. Phone : 600'^S2, 0665S3, 665668 ILi: 011-/3104

Expor Houses, Trading Houses and Star Trading Houses

r-T^T^^^ZK^^^^:^^^ v,.;.,hccouccn,cd LfCs I lou.va, .orro.,Jyn,..dc ^nnncn.., .I.e rcg,s.u..on should bel..<i

2 Tli'c nw'Lu he ;cpi.)c,l ^'. sn Ll'C tor (lie ) utixv- e of tcglsltMlon, vide 2:)N-3)/92-97 dt. 30 6 92.

Page 126: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

1 1 6

SI. No.

ErCs/l'lEO/Cll,etc. rnxlucls

W&stcm Region, A-74, Mittnl Court, Nnriman Tdint, Dombiiy-400021

Regional Offices

Soullicm Region, No. 30, 3rcl Si reel, Will lace Giirdcn Nuganibakkam, Madnis-600006

Ensicm Region, Royal IZxciiangc, 6, N. Jubhas lioad, CulcuHa.700001

Tobacco Board, lakshmiPuram P.O.Box 451 Guntiir-S22007(A1')

(1) II.No. 3-6-547/5/2, Street No. 7 Iliniayal Nagar Ilyderbad

Coir Board, Post Box No. 1752 Ernakulam Soulli, CtKhin-682016

Tobacco & tobacco products

Regional Ofllces

Regional Offices

(2) 622, Mount Road Madras-600006

(3) 1/9, HI cross Unity Bldg. Annex (4tli noor) C.S.I Compound nan[;alor-560027

Coir

(4) B4/141 Safdarjung Enclave Near Kamal Cinema New Dtllil.10029

Door No. 24 (1st floor), n t h Main Vasanthnagar, Banj;nlorc-S60002

Liaision OITlce

nalNo.54,DDA(Sre) M.S.Bldg.,TowerNo.in l-aslofKailash New Uclhi-110065

Export ConCract Regn. Onice

AUeppey (Kerala)

Tea Board, 14, Diplabi Trailokya Maliaraj Sarani (Braboumc Road) Calcutta-700(K)1

Tea

[Regional offices

Tlic Tea Boaid's Regional and Sub-Regional Offices are loaitcd at Amrit.sar, Bombay, Coonoor, Cochin, Darjceling,

Guwahati, Jorhal, Kolayam, Madras, New Dcliii, Palampur, Silchar, Siliguri and Tczpur.

4. Cenral Silk Board, Silk United Mansions Bldg. (2nd floor) 39, Mahalma Gandhi Road Bangalorc-Sr.OOOl. Phone :5('>S4I'I,56S194

Thcv ^rc nol icgisicuiig.iullioiily [or any protluct under Ihc 1992-97 UXlMI'olicy. However, llic products falling wilhin Ihe purview of each of the CB»

ire shown here.

Page 127: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

1 1 7

Export Pro. Conn.. FlEO, Coitim. Boards, Dav. Autliortic. cs

Si N...

KrCs/I'IEO/CH.ftc.

5. Codec Bo.ird No. I, AmiK-dknr Roiitl nan>;l"ix-56n()01

(1)

414/415, A-shokii Estate Bnrnkli;uiih.i Ro;i(l NtwDdhMi<«)»l

Spifcs Bf>;ii'd, K.C. Avenue, S(. Viiicciil Cross Rojid, P.B.No. I9()y Eninkul.-iin Cochin-6K2(UH

I'rotlufts

Coffci

Regional olflccs

(2)

Also offices at CaJculfa, Bombay, Madras, Calicut Kalpetfa (Kerala), Coimbatore, Salem, Patlagunda

Cutry iHiwdeni lid |).'tsle,s|)ia*s, (111"; ;i(idnlc«fcsi(is,.';|)ices whole or ground in consumer packs of I kg. or less under brand names and spices whole or ground in balk, CHrdamom.

Ragional office

A-135, Defence Colony, NewUellii-Il(l024

7. Ruhher Bojird Ruhher P.O.Box 280 Sliiisiri Rojid Kotlayani-686(l«l (Keriil.i)

Siii)-()mce : 460. Deepak BIdg., 13, Ndiru Place. New Uelhi-Il()(Jl9

Now: Sub-ofliccs iirc also located in Bombay. Cocliiii, etc.

IMSMEffl

Agrieullure and Processed Fond Prodijcis Export Development Auliionly Ansa! Cl'iamher-ll (4tli Flour) 6, Bliikaii Cania Place R.K.Piirinn Newl)ell)i-lll)0r.6

M.\rn\e ruHlm'ls F\porl Developmcnl Aulhoniy M,G ih'.nl P.O.Box 1708 Coehin-6S2)ll5 (Kenilii)

Agricultural products. proce.s.scd food.s, etc.

Fish, li^li meal and lisli products

Page 128: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

118

SI. No.

K r C s / l l L O / C i t . i i i .

(1)

1(11, Nirinil Tdwcr B.ir.ikli.nnli,! Rd.id Nn« I)i-ilii-i 100(11

riiKJiuts

Rcg ionn l oHlcc!;

{2)

lUgmi Cli,imk'rs, fill ridor,

l.iiiiinl.il B,i|.i| M.iri;

N<ifiii).iii J'oiiil

iloiiihiiy.^lMIIIIl

(4) N(,(rPcruni.iiin(ir A((y WiiJmuddii Kl.iiid ("<)di(ii-6,S2«03

!iidi,i Tr.idc F'roinolioii Org.iiiis.ili(iii Pnigdli Bhav.iii Prag.ili Maidnu Miilhtira Rd.id

New I)ellii-110(101 Ph: 1^I')\S0, ??/S2W, i Z-Z- .S'/ TI\.0^I-(^I^III6I022 Fax : 9/- / /- .? .?/rS7^2/??2aV"

4-U M.iiidi Bldi: 12 Ldiiddii Sircil (•:iluillji-70(IOI7

(>) [ndinn CdamlxT Btdj;. EspianadL Madras-fiOdOOl

(1) India Trade Prdiiidtidii O i g . i i \ i s i l idi i

World Tr.idi Cciidc-i 1 111) Floor, Ciilfi P.inidi-n(mil>iiy-4<)ft()05

(4) liuiin Ti.idc Prdiiioiion "Shanlinikcinii" Fl.ll Nn 9, 4 lhr iddr 8, Cim.icSirccl CaIcutUi-700017

Regional offices

(2) IIKIM Fridr Proiiidiion

O i | ' m i s i l ioi i

Jh.uisi Ciisllc Cdo))Li,ig( Rd.id

nojiil)!iy-4(HI(l.19 Ph 202l7SS,202I7'fO Tlx UI!-.S^2!9COMX/N Fax 022-2044022

iiuli.i 1 r.idc Proiiidlidii Oig.inis.ilioii

C-13, S<m'dd.iyH Ngr. K,(i)|)ur-20H005

(3) liidi.i Tr.idc Pr(iinolioii Oig . in i s . i l i o i i

11,(1 N(. 24-A, liii|)iri,il Court 3 VI, Coiininglifiiii ROHJ

Il.»n«altire-56(I0S2

liuli.i I r.iili PioinolioM Org<iiiiSrilidn

Raj.i AIIIMIIMI^I Bldg. (2iid llocir) IHA, M,irsh.illsRoH(l Eginoic M,Hli.is-(i00()18 Ph 476H44 Th nil-77HnCOMXIN Gihle CONTREXIND

1 nuMTO-lndn I„clc I'ronH.lion Org million Inv Ixm irc ikd by mctiiini; llic n)A(rnd( l)('

of Indi.i)

<lopminlAulhonly)andlhc-1>Al ( rradcFair Aulhonly

Page 129: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

1 1 9

Regional Licensing Authorities, Development Commissioners for EPZs/EOUs and Advance/Regional Advance Licensing Committees

fMI9^dl0H4| Ueeii^lHg AUthtjfrif leg

S.No.

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

Licensing Autliorilics Tck^rapliic Address Jurisdiction

The Joint Chief Controller of Imports & Exports, 4, Esplnnnclc IZnsl. Calcutta • 700 069. The Joint Cliief Controller of Imports & Exports, New Central Govt. Offices Building, S.E.Wing, New Marine Lines, Churchgatc, Bombtty - 400 020. The Joint Chief Controller of Imports . & Ex[X)rts, ' C ISlock, Commcrci.'il Building No.2, Pune Municipal Transport Building, Swargatc, Pune. (Maharashtra) Tlic Joint Chief Controller of Imports & Exports, 197, Pctcre Rand, Royapetah, Madras-600 014. The Joint Chief Controller of Imports & Exports, Central Licensing Area, B.K. Roy Court. 6-7, Asaf Ali Road, New Dellii-llO 002. Tlie Joint Cliicf Controller of Imports &. Exports, 117/17444, Kakadeo, Kimpiir-208 025.

'Hic Joint Ciiief Controller of ImporLs ifc Exports, 7lh Eloor, Cavcri Bhavan, P.D.No. 9(:)88, Bangiilore-560 (K)6. nic Joint Chief Conlioller of Imiwrts & Export?, 'A' BkK-k. lUh ll(Xir, Govt. MullKStoieyed Building, Unldarwaja. Ahmedabiul-3K0 0Ol. 'Die Joint Chiel Controller of Imports &. Exports, 6-VI-C, Green Field, Veer Shakti Nagar Chowk, Liulhiana (Punjab).

CONIMPEXTRA CALCUTTA

CONIMPEXTRA BOMBAY

CONIMPEXTRA PUNE

CONIMPEXTRA MADRAS

CONIMPEXlllA NEW DELHI

CONIMPEXTRA KANPUR

CONlMPEXTliA BANGALORE

CONIMPEXTRA AIIMEDABAD

CONIMPEXTRA LUDllIANA

West Bengal, Sikkim and Union Territory of Andaman and Nicobar

Maharashtra except Oftcccn districts which arc under the jurisdiction of Joint Chief Controller of Imports and Exports, Pune and Daman, Dadra and Nagarllavcli.

Fifteen districts of Maharashtra viz. Pune, Ahmed Nagar, Jalna, Beedkolhapur, Ijntur, Nanded Osmanabad, Prabhani, Ratnagiri, SanglJ, Satara, Solapur, Suid Durg and Nasik.

Tamil Nadu except districts of Coimbatorc, Nilgiris, Pcriyar, Salem, Kanyakumari, Tirunclvcli, Ramanalhapuram and Mndurai.

Delhi, two districts of Haryana, naemly, Faridabad and Gurgaon an four districts of Ultar IPradcsh. namely, Mecrul, Ghaziabad, Bulandshaliar and Ilardwar.

Ultar Pradesh except those areas which are under the jurisdiction of Jt. Chief Controller of Imports and Exports (CLA), New Delhi, Varanasi and Mnr;ulabad. Deputy Chief Controller of Imports i Ex(M)rls, Piuiipiit. Kamataka

Gujarat Slate excluding areas falling undi.T the jurisdiction of Rajkot, Baroda and New Kandla Of Ikes

Punjab excluding the Districts of Aniritsar

Page 130: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

120

S.N<». Lki'iisiiij; Aii(l\(iii(ii-s IvUT^riinUic AiUlriss .IviiSsdicliim

(10) Till.' J(it((( Ci>ic('Gi(i(ixillcr<i( ttinunc> i t E.\|inils. Priiil))ik;ir.u) l},i/,ir. A\.iiii N'\,iiv,is,iK Kciuir;!, S;i^,ir SfiMi, (iiil/.in Mill Dliiiriiiiisal.i lidiicl, Mt>ru(liil»;i(l(U.P.).

(11) Till- Jiiiiil Cliic'l Ominilk-r i>| Impuris

P.B.Nil.1129, Cliillnor R..;iiJ. Ern;ikul;iiii. C:tKUin'6H2()l)l.

(12) TlieJoiiil CliicrOminilk-r iirinijioris

UiJvo^' Bl).iv,ii), Til;ik M;ii^, .liiipiii--3t)2(H)5,

(\?i) Tho Jdiiu Chict CoiUvxillcr i>l Impons it E\|)(lrl^, MiiMuijj.tl Ni . . .S\V,13/121, Rislii|vUl,iii Mriig, IM riooi, S.iMii.iHi, Viiniiiiisi-221 (I07(U.P.).

(14) Tlio Dcpuiv Clm-l Coiilrollcr ol imporls it E\|iurls. Kciidriyi) S.iii.in, Kl Floor, 5(h Block, SiiK.iii B^/.-ir ' Hy(U'ralin(l-5(M) 195

(15) Tlu- Deiuily C h i d CoiUrollcr ol l(tt(Kir(>> it E\(Hir(s, R.G.B;mMhRo;id, (;ii\viiUiili-7X0 024.

(If)) Till- Dcpuiy CliicI Cniilrolk-r ol ImporK (t ExpoiK, III Floor, Gum Trg Bjilwdur Cniii|)li'x Ni'W MiirKi'l, Uliii|)iii-4f.:'. »U3.

(17) Tin.- Dcinilv CluVr CmKrollcr u( ImporK it E\|'0(is. li\iU;> Lilc BuilcliuL', (Anni-xc), Fourll) Floor. Tin iiv Ro.ul, f'oiiiil>atorv-C)41 (IIK.

(18) Tin- Di'inily C h i d Coiilrolk'r ol' Impoils , t Expoih,

416-L, Model Town,

l';niijiiil(l!)UViUi;i).

(19) The Dcpiiiv C h i d Coi\tr<illcr ol 1n\pn\ls it Expoils, UanxUi (Giij.u.il)

(20) Tin- Di'piilv Cl i id Coiilioller ol lu\pnr\s it ExpoUs, Ri-M(lciii V Uo.iil, Srimip.r.lHOOtH.

CONIMPEXTRA MORADA13AD

CONIMPEXTRA ERNAKULAM

CONIMPEXTRA JAIPUR

CONIMPEXTRA VARA NASI

CONIMPEXTRA HYDERABAD

CONIMPEXTRA GUWAHATl

CONIMPEXTRA BHOPAL

CONIMPEXTRA COIMBATORE

CONIMPEXTRA PAN! PAT

CONIMPEXTRA BARODA

C(W1MPEXTUA SRINAGAR

M(irad,ib:tU. Ddiraduii, Ullarkjisi, Tchri Garliual, Clarll^A.l|. Cliamoli, Pilhofapirli, Aliitorii, Bi)ii.iur. Nainitiil and Rinupui

Kr;ala and Uiiio/i Tcrriiory <il Laksliadwiij '

Rajaslliaii

Varnnasi, Mir/^ipur, Glia/ipur. A/;migarli, Balia. Di'uriii, Gorakiipur and Ba.sl/.

And lira Pradcsiicxikidiiij^ areas iiilhcjufisdirlioii ()) Assii. Chit') CoDlollcr of liiiporls & Exports, Visaklia|)alnain.

Assam, Arui iachal P radesh , Nitgalaiid and Maiiipur.

Madliya Pradcsli

Four Dtstii^ts 111' Tiniiil Nadu v'l/. CmmbMotv, Nilgirls, Pcriyar and Salcni

The whole of Haryana Slalc (cxduding paridabad and Gurgaon) Awi Saharanpur and Mu7z;»ffar Nagar Dislriiis oCUltar Pradesh

Seven DisUiels (^IGujural Slate, namely, Baorda.

Sural, Khcra, Panehniiilial, BHhruch. Valsad and

I he Dnnj^s

Janimu k Ka'^hniir (N<Ue;-Durin>; winler a eanip oKiie will luMdioii al 24/C, Gaiidlii Nagar,

Jantnni)

Page 131: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

1 2 1

RcgonalUc. Aul/i., Comm. for EPZslEOUs<& Advance/Reg. Advance Licensing Commtitees

S.No, Licensing AuthovHics

(21)

(22)

(23)

(24)

(25)

(26)

(27)

(28)

(29)

(30)

(31)

Assfit. Chief ControUcr of Imports & Exports, Dcsai Building, Bliupindra Road, New Town Hall, Kajkot-360 001.

Ttic Deputy Chief Controller of Imports & Exports, Discomnnnllliavan, Vatm-SOO 001.

Tlic Deputy Cliicf Controller of Imports & Exports, 77/1, Gnnclhian Compcx, Main Road, Anna Nagar, Madura i-62S 020.

The Assistant Clijcf Controller of Imports & Exports, Mcrello Building, Shillong, Meghah»ya-790 9001.

Tlic Assistant Chief Controller of Imports & Exports, CBR Building iVlail Road, Aniritsar. (Punjab) '

The Assistant Chief Controller of Imports ife Exports, Afthirwad Building, •• -Samtaimcz Vanjm, iGoi,).403 001. The Assistant Chief Controller of Imports & Exports, Administrative Building, Kandla Free Trade Zone, Giiiulli idhani (Kutch-37lJ3t)l). The Assislanl Chief Controller of ImpoUs S: lixpoii.s. Sec)Of-33. SCtJ-288, Chandi^ai-h-l60 02J.

The Assistant Chief Controller of 1(11 ports ct E.\jx)i!s, Challlia^unJ, Naya Bazar, Cuttaek-753 004.

Tlic As.s!>iant C:iiier Conlroller of Imports & Exports, r.B.No.l4. ro»did)cn7-r)05 001. The Assistant Chief Controller of Imports & Expoits, DwrNo.43-*)-l66, First Hoor, T.S.N. Colony, Visaldiapalnani-53U 016.

Tek'grnpJiic Address Jurisdicd'oii

CONIMPBXTJU RAJKOT

CONIMPEXTRA PATNA

CONIMPEXTRA MADUIUI

CONIMPEXTRA SI-ULONG

CONIMPEXTRA AMRITSAR

CONiMPEXlllA PANJIM

CONIMPEXTRA GANDIIIDIIAM

CONIMPEXTRA CHANDIGARH

CONJMI'EXTitA CUITACK

CONIMI'EXTRA PONDICIIERRY

CONlMPEXTRy\ VlSAKIIAl'ATNMI

1 l5c DislncLs o[Gujarat State Known as Saursshlca (excluding Kutch) and Diu in the Union Territory of Daman and Dili

Bihar

Districts of Madurai, Quidi-Millcih, Romnad, Kanialnagar, P<nsum Pon Thevcr, Tbjrumanagar Ncllal Kattabomnian, Chld.Tmboranar and Kanyakumari

Mcghalaya, Tripura and Mizoram

Amritsar District

Goa

Kutch District of Gujarat

llimaclial Pradesh and Union Tcrrit^ory of Chandigarh

Orjssa

Utiion Icrrilory of Pondichcrry Karaikal, Mahc and Yanam

Tlic Districts of SrikakoJam, Visakhapatnam, Easl Godavari and West Godavari of Andhca Pradesh

Page 132: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

122

S No IJcxiniiig \ii l lnii lilts l ik(;ni|)l i ic AdilKjs liiriMlklioii

i8,< DtvMopmtnt Cotnmlatronti's for. BRZi/EOUS (32)

(33)

(34)

(35)

(36)

(37)

(38)

Hit Dn c)opnicni/Join( IJci tlopmcnl/ Dc(Hiu DciLldpincnl/ A";";!-;!!!!!! Dcvciopmcn( Coiiiniiiioncr, Santa rru7 LI'Z, Andhcri Cnsi, Itoi il\)\

1 he 1X\ LlopiiKiil/Joinl DmIopniLril/ l)t|HU) l ) t \ i . l i )p imnl /Assl in i j i l l)iu)ii/ i i i i i/ i l (iimjiihiniju, himllii I n inik 7P!K Kdiidli naiKllildliiiiM

ni l l)c\ L1O| mini 'Irani He vi Ijipim nil IHpi i i ) DcvLlopmtnl/A'isiM int Dc clopmcnl rommi'iioncr MKlr\'; Lvpon IVoccvinn Zone, G S T Road, N II -ID I imhinm,

Mudnis fionw"; TlicDcvclopincnl/Jomt Devi lopmcnl/ Dcpiii) Dcvclopniciil/A';";isl,in( !)nclopmcn( Conimisioin,r Cochin Lsporl l'r<x:c';";ing Zone, Kakkannd, CiKzlun 682 030

VicDciclopmcnWomlDcvUopmcnl/ Di piily l)cvclopmciil/A'!<!i';l ml DuLlopmtnl ( oiiiiiiMoiRr NOKIII L> p<irt IVoccsing Zone, Noida D.idri Koid. PhT;c l( Noida Dislrlcl, Gliazjab.ul-20U0S

Tlic Dc\ clopmcnl/Joinl Dcvclopmcnl/ DcpiJl) DcvcJopmcnI/A":';/';! nil Dcvclopmcnl Comniisioncr, 1 ill.i Ctporl Proccwinq Zone, 2nd MSO nmldinq, Room No (I, Nimm i'lnce, 214/') WCBoscUoad, Ciilciilla

IliL Dcvclopmcnl/loinl Dcvclopmcnl/ 1 cpuiy Dcvclopmcnl/A^'ii ' i l ml 1 lev clopmcnl Commisioncr, Vislnkh ipiimm Lvport Pro ccssmg Zone Udjni; Rhnvin Complex, '-inp inni Jundioii \ iMil Inpiilinni "illKKM

sLri'Koznm UOMUAY

KAriy. OANDlllDllAM

Ml IV MADIIAS

C I ('70NC LKNAKULAM

1IVWLLL NLWDLLHI

ru'z CALCmiA

VII'Z VISAKJIAPATNAM

l/nils -iiiu lied (n Smla Cruz EPZ and approved 100% LOUs locnkd In Mih ir.ishlro, Goa, Daman & Diu, Dadra and Nagnr Ihvcll

Unili "iiiuilcd in Knmlh Ircc Ir.ide Zone and )ij)()rovcd 100% LOU« illudicd In Oujnnil

Unll^ Mill ilcd in M ult n Lvporl Proce-i'iinj; Zone niKl iprcnul KX)% r o i k <;lui ilcd In I.imll N idu, Andhr i I'r.idcih Andnnnn iS. NIcobar kjjinds and Union Territory of Pondichcrry

UniC; <;iiunltd m Cochin Export Processing Zone and 100% COUs situated in Kcria, Karaalalca and Lakshadecp

UniI5 silunlcd m Noida L\port Processing Zone (im) ipproval 100% TOlh •tninled In Delhi, UliT I'ntk li.l'urijil), ILayii/11,111111 ndilH ty-li,! iminu & Kaslimir, Rajaslhon, Madhya Pradesh and Chandigarh

Units situilcd m Tails Export Processing Zone an J00% LOUs situ tied In West Ucng.il, Orlssa, I3ihar, Assnm, Arunachal Pradesh, Tripura, Minipur, Mcghalay, Nagaland, MJzoram and Sikkrni

Unils silunlcd in Vlsalihapalnaiii Export Processing 2Ujnc

SI No CoimiilliH- \Niicrc L^)ciitcd IiiDsdiciitloii

ill (2) (3) C) 3 Advance Licensing Committee/Regional Advance Licensing Committees <

M\ nnce 1 iccnsing Conmiillcc

Rc^inni l A<lvTncc I iccnsing ronimillcc lloinhnv

Office of the CCI&E, New Delhi

OrfRCOfJl CCI&E, Uom.iby

AU Slalcs/Union Territories

M ih inslitm MadhjiPi idcsli Co% UnionTcmloncs of D^m^n, Diu and Dadra and N.igar Havcli

I r<Tr-| i ; 2 (I) A i ( t l f l l l l ( l j | l f l \ \ l> l l t II II nl nf I'lixr l , f f l (V( l I) )9()0-M

(II) n i f j ( ( l l l «l tlf l l n r jicjil ikn w«« i / /n i l j ( r m <

(1) m (3) 0) •) HI I i: II I Ailv i/icc i R i n M i i / ' f)(li(( of Jl m i l ,

( I iiiinilln M KII IS M KII IS

4 l U c i o n i l Adv nice Licensing OfficcofJl CCI(S.E, Committee Cilcutli Cnlcutn

5 R e ' i o n i l Advnnce l icensing OfficcofJl CCIAE, Coinmillee New Delhi (CI A)

New Delhi

10

11

12

Region il Advincc l icensing Officcof tliejt CD&E, n im^iloie

OffieeofllieJt CCI&C, I udl.i ma

OirieeoflheJl CCl&C, Alimednbnd

OIlKeofllicJl CCIsin, K inpur

Coiiiiiiillei H»i.,il<vre

IU i , ion i l AdvTiiec CommillLe, Liidhnni

Region il AdvTncc Commilli.e Ahmed ib nl

lU I inii il Adv Ulee Commillee k inpur

1 iccnsing

Licensing

1 ieensliig

Hei, inni l Adv inee l icensing rommillec Coeliin

lU 1 UMi il Ailv mee I iccnsing (iminii i l i i Jiiipur

lU 1,1011 il Adv iiRe I Ieensliig Committee, Vjramsi

OIlKcofllicJl CCl&L, Coehm

Olliet ofllieJt C t l&L , J Mpiir

OllieeoMlltJl CCl&L, Vnranjsi

I imil N idii Unmii lerrilorics of I'ondicherry, K ir Ilk il M ihc IIKI Yen iin

West nuign! Hilnr Orissn Assam, Mcglnliya, Sikkim Ni^ ihnd ArumchnI Pradesh Mmipur, Inp i i r i Mi/ornm and Union Territories of And innn i^ Nieobnr Isinnds l l i r y i m J immuiKishmir , Dislls of UP under (fjo .Himini'ilnin'C jurisdiction of J( CCl&E, Mondrbid Dy CC/ttI I 'mipjl & Districts of Meeriil, Cihi/ i ibid & Uul indsbnbar & Union territory of Delhi Knrmtaka, Andhra Pradesh

Puij-ib < Union Icr r i lory of Chandigarh, Ihm iclnl Prielcsh

Gujnr.it

Ull ir I'l idi h exc indiiii; Iho'C Dislncls cov< red by R A K New l)i llii md il o Ihdsc ift is which I i l l under tlic jurisdiction of J( CCI&L, V II m isl Kcr,il I .ind Union icrritor) of Lakasliwadcep

l^ijislhin

Di Incis of V ir i insl, Mi r / ip i i r , (jh i7ipur, A/ imgarh, Dalia, Ucona, Oorakhpur and Bnsli

Page 133: PROCEDURE OF STARTING BRASS HARDWARE AND ...ir.amu.ac.in/7010/1/DS 2513.pdfdissBrtation entitled "Procedure of starting Brass hardware and artware export business - A study with specific

123

BIBLIOGRAPHY

2. G.D. SHARMA :

1- PARAS RAM :

EXPORT - WHAT, WHERE, HOW

18^^' Edition, 1993.

Ariupam Publishers - Delhi

I

HOW TO START YOUR OWN EXPORT BUSINESS

1^^ Edition, 19S2.

Vision Books - Delhi

3. DR. (MRS.) S.K. VERGHESE s

EXPORT CREDIT AND CREDIT INSURANCE

FACILITIES IN INDIA AND ABROAD

1970, I.I.F.T. - New Delhi

4. PHILIP KOTLER :

MAKKfcTINB MANAGEMENT-ANALYSIS, PLANNING

AND CONTROL

5 ''' Edition, 1985.

Prentice Hall of India (Pvt. Ltd.)

New Delhi

5. INDIAN EXPORT BULLETIN :

Vol. XXXXVII N D - 2 5

June 19, 1993.